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Insights & IdeasPricing Strategy FAQs

We are frequently asked questions about value-based pricing and how to apply its principles. Some of our most common question include:

  1. Isn't a customer's willingness-to-pay a good proxy for the value they receive?
  2. We drive a lot of pricing decisions based on our market share objectives…Is this appropriate?
  3. Is it okay to use price to help drive sales volume or prevent sales losses?
  4. How should we respond when a current customer decides to move its purchasing of our product to a "reverse auction"?
  5. How can we deal with a company that allows users of our product to select us based on the value we bring to them, but then expects us to negotiate a price with a purchasing department that treats us like we are supplying a commodity?
  6. What can we do to reverse the price erosion that we have experienced in our industry?

If there is a question you would like to see addressed, send it along to us at SPG_Insights@monitor.com.


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