The policy of forming the cost based on the consumer value of the goods was used back in Soviet times under the planned economy to determine the price corridor for various groups of new products or services. In this process, a direct dependence on the cost of production and the characteristics of the production process was observed. With the development of market relations in the country, the concept of "Consumer Value" entered into pricing, which is why a new method of determining the price began to be used. For the effective development of the company and successful counteraction to competitors, this position must be used in calculations.
Before determining the cost of any product or service, it is necessary to find out the importance of this product from the consumer's point of view. This approach to pricing is considered the main one in determining the final cost of the product for the buyer. This means that the manufacturer has abandoned the traditional approach, according to which the product is first manufactured, then marketers begin to promote it, after which the final price is set.
Value-based pricing
The use of the new method allows truemoney database to immediately determine the cost of the goods, simultaneously with the implementation of marketing activities. The price is set based on the value of the product, and the manufacturer's costs are not taken into account in any way.
Below are two pricing methods:
Based on cost price. For example, a company has developed a product that the creators believe to be of good quality. The financiers have determined all production costs, and based on this, the price of the product has been calculated. Its value must cover all expenses and ensure profit.
The task of marketing services in this case is to convince potential buyers of the high consumer value of the product, which corresponds to the stated price. If the cost is high, the company will have to reduce costs or record a decline in sales. In any case, there is a decrease in profit indicators.
The pricing process based on the customer value approach is quite different. The organization plans to set the price based on the value of the new parameter. When developing a product, its customer value and characteristics are taken into account first, and only then, based on this data, the costs are determined.
The process of pricing based on cost is carried out from the point of view of the customer's needs, with the determination of the indicator of the need for this product for him, and its cost should be related to its advantages.
Product Value Management
To increase the level of sales efficiency, it is necessary to manage the value of the product, which goes through several stages. Let's consider each of them in more detail.
Stage 1: Analyze the value of the product for different customer segments
An analysis of the criteria that are a priority when choosing a specific product for consumers from different target segments should be conducted. This data should be obtained from category A and B customers.
Then a detailed table is formed, which presents an analysis of the proposal by sections “Company – Product – Service” and by qualities “Property – Characteristic – Benefit”.
Next, a chain of determining the value for the client is created by searching for intersection points. To do this, it is determined where in the created sequence the benefit, one or several, can be claimed, according to the sections "Company - Product - Service".