I first learned about value pricing as a product manager at Metcal. At that time the company was a startup making high end hand soldering equipment for PCB assembly houses. To give you an idea of how high end, at that time a Metcal soldering station sold for 5x that of competitive units, and the consumable tips were 10-15x that of the competition in what most would call a commodity market. Yet, in eight years, the company went from being the #8 to #2 market share player.Now while there were many reasons for the company's success - superior technology, ergonomically friendly design, robust product quality, etc. - the killer app in the company's sales arsenal was a customer value analysis created by one of the sales managers. This simple spreadsheet model translated the product's feature/benefits into a quantified customer value proposition.
To read the full, original article click on this link: Thrice Around the Block: How to Set Prices: Customer Value Analysis
