Value-based pricing as a strategy to maximize profit
A value-based pricing strategy includes both the value creation and the value appropriation. Firstly, it is important to understand exactly what drives sustainable value for people. Creating these values in products and services is the foundation of the value-based pricing. The cosmetic brand La Prairie, for example, launched their Caviar Collection for a very special skin treatment. By communicating the value of the visible improvement one’s face will receive, the perception and the willingness to pay a higher amount for …