If you are feeling stretched to help your portfolio companies (portcos), evaluate pricing as a force multiplier to achieve your growth goals. A pricing engagement is relatively turn-key compared to other growth levers. If you have a portco struggling to implement Go-to-Market strategy, a pricing strategy could be exactly what is needed for a lift.
Consider a pricing strategy that leverages value-based pricing models to maximize value creation.
The Benefits of Value-Based Pricing
Value-based pricing is the strategic setting of prices based on customers’ perceived value and willingness to pay. It helps portcos achieve their value creation and capture targets more efficiently. This pricing strategy ensures that prices are neither too high to scare away customers nor too low to leave money on the table. Find the sweet spot that captures the true market value of the solution that aligns with customer expectations.
This article shares a summary of value-based pricing and the opportunity to go deeper. Invest a few minutes reading this article, and if you find it intriguing, download the full report below.
Concerned About Falling Behind by Not Leveraging Value-Based Pricing?
You’re not alone. A recent EY-Parthenon Study shows that only 30% of global CEOs see pricing as a strategic priority, despite its significant impact on growth and value creation. Top quartile performers are adopting greater use of pricing strategies. The time is right to evaluate pricing strategies for your portcos to stay ahead of the competition.
Cortado and other Management consulting firms are seeing a sharp increase in pricing strategy requests. This coincides with the Go-to-Market pivots being made to achieve balanced growth of topline revenue and margin performance. And pricing strategy investments is a high-impact means to achieve balanced growth.
Where do I start?
There are seven indicators that reveal a need for value-based pricing. Review this list and if you find four or more indicators, then value-based pricing may be right for you. Anything over four increases the likelihood that value-based pricing is exactly where you need to investigate.
Summary
Unlock the power of a value-driven pricing strategy to help you drive balanced growth. Our pricing experts identify what your buyers are willing to pay through market and data analysis, price modeling, and seamless execution. Optimize your prices to establish the optimal price-to-value ratio and expand profitable revenue potential.
Download the Value-based Pricing Report to start maximizing your revenue. This report emphasizes the strategic importance of value-based pricing in achieving rapid and sustainable growth. By focusing on customer value and willingness to pay, companies can unlock hidden value and drive significant revenue and profit improvements.
