Price should almost never be ‘cost-plus’ (Double Your Price: Part 5)

This extract from the prize winning book "Double Your Price" examines the drawbacks of using cost-plus pricing and advocates for value-based pricing strategies. It argues that cost-plus pricing ignores customer value and competitors, leading to potentially underpriced products. Instead, the author stresses the importance of understanding customer value and setting prices based on the benefits they receive. The book explores various pricing methods, including competitor-based pricing, and provides examples of how to build emotional value into products to increase their perceived worth. The author also discusses techniques used by companies to avoid price competition and strategies to identify and manage unprofitable customers. The text emphasises the importance of a customer-centric approach to pricing, as well as analysing the value generated for the customer and the role of emotional value in pricing decisions. https://www.amazon.com/Double-Your-Price-Strategy-Tactics/dp/1292426349/ https://www.amazon.co.uk/Double-Your-Price-Strategy-Tactics/dp/1292426349/ Double Your Price: The Strategy and Tactics of Smart Pricing - Winner of The Sales & Marketing Book 2024, Business Book Awards. Audio provided by NotebookLM AI.