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. | 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. | ||
==How it works - a worked example== | ==How it works - a worked example== | ||