Price New Products with Value in Mind

Value pricing, unlike cost plus pricing, considers that customers care how much value they receive at a particular price not how much it costs companies to make it. 

Every year companies spend billions developing and launching new products from ‘revolutionary’ to ‘incremental innovation’ to catch up with competition.

When should pricing teams get involved with new product development? 

How can value pricing help minimize conflict between finance, marketing, and sales?

If pricing is an afterthought, there’s a higher risk of failure on new product launches. The failure can manifest in either lower than forecasted unit sales, lower than expected margin percentage, or lower than expected revenue.

Use a robust price setting process!

Companies with high pricing power share certain traits: a culture dedicated to pricing, sophisticated tools to quantify customer willingness to pay and customer price elasticities, and robust pricing processes.



Krishna Vankayala, CPP
Director Global Pricing
Schneider Electric, Singapore.

During the PPS 2nd Annual Asia-Pacific Pricing Workshops and Conference in Singapore keynote session New Product Pricing: Intersection of Sales, Marketing & Finance: Value Pricing, Krishna Vankayala, CPP will describe how Schneider Electric’s product refresh in the Japan market led their team to implement Value Based Pricing in its new product development process.

We hope to see you there!