Value Based Pricing: Difference between revisions

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VBP ~~(value based pricing~~), also known as VOP ~~(value optimized pricing~~), is a practice ~~where a business sets a~~ price of a product or service based on its estimated value to a specific consumer. This practice effectively gauges how much the consumer values what they are paying for before resorting to a competitor or creating their own solution.

Value Based Pricing (VBP), also known as Value Optimized Pricing (VOP), is the practice of setting the price of a product or service based on its estimated value to a specific consumer. This practice effectively gauges how much the consumer values what they are paying for before resorting to a competitor or creating their own solution.

==How it works - a worked example==

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==Examples==

[[Walmart]] & Kroger plans of using smart pricing on its in-person retail products

[[Walmart]] & Kroger plans of using smart pricing or "surge pricing"<ref name="WalmartSurge">[https://www.dailydot.com/news/walmart-surge-pricing/ Walmart Surge Pricing]</ref> on its in-person retail products. Walmart denies this claim.<ref name="WalmartLabels">[https://www.msn.com/en-us/money/companies/walmart-is-replacing-its-price-labels-with-digital-screens-but-the-company-swears-it-won-t-use-it-for-surge-pricing Walmart Denies Surge Pricing]</ref>

[[Cloudflare]] charging you higher rates for the same plan as other users

[[Cloudflare]] charging you higher rates for the same plan as other users.

[[Doordash]] charging users hidden fees based on how they use the app and what device they were ordering from.

~~[[Doordash]] charging users hidden fees based on how they use the app and what device they were ordering from~~

==References==

[[Category:Common terms]]

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-VBP (value based pricing), also known as VOP (value optimized pricing), is a practice where a business sets a price of a product or service based on its estimated value to a specific consumer. This practice effectively gauges how much the consumer values what they are paying for before resorting to a competitor or creating their own solution.
+Value Based Pricing (VBP), also known as Value Optimized Pricing (VOP), is the practice of setting the price of a product or service based on its estimated value to a specific consumer. This practice effectively gauges how much the consumer values what they are paying for before resorting to a competitor or creating their own solution.
 ==How it works - a worked example==
@@ Line 18: / Line 18: @@
 ==Examples==
-[[Walmart]] & Kroger plans of using smart pricing on its in-person retail products
+[[Walmart]] & Kroger plans of using smart pricing or "surge pricing"<ref name="WalmartSurge">[https://www.dailydot.com/news/walmart-surge-pricing/ Walmart Surge Pricing]</ref> on its in-person retail products.  Walmart denies this claim.<ref name="WalmartLabels">[https://www.msn.com/en-us/money/companies/walmart-is-replacing-its-price-labels-with-digital-screens-but-the-company-swears-it-won-t-use-it-for-surge-pricing Walmart Denies Surge Pricing]</ref>
-[[Cloudflare]] charging you higher rates for the same plan as other users
+[[Cloudflare]] charging you higher rates for the same plan as other users.
+[[Doordash]] charging users hidden fees based on how they use the app and what device they were ordering from.
-[[Doordash]] charging users hidden fees based on how they use the app and what device they were ordering from
 ==References==
 {{reflist}}
 [[Category:Common terms]]