Mass value for your business, value pricing - PSF Consultoría empresarial

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Mass value for your business, value pricing

In general, the services have a defined price and it is the customer who has to bear the costs that his service entails. But sometimes, there are certain situations in which the supplier takes care of the expenses in exchange for a final percentage of the sale, is the value princing.

When one is placed side by side with the customer to pursue a sale together, the relationship is much more like a partnership than the usual one of a customer and a supplier. For this relationship to work and operate in an optimal way, several conditions have to be given:

Firstly, the good that has to be sold either is large, or is within the catalog of a consolidated brand. Sadly value pricing is more complicated in companies that are starting or with products that are not yet mature. The investment of the value princing is quite huge and it has to be possible to monetize it for executing it in the first place.

Secondly, a full trust has to be given. In this case the person in charge of marketing is a company that also has to sell a product. In the end, you act as a sales person for the brand, with all that implies, therefore, you have to have a great knowledge of the product to sell as well as a very great confidence in the brand that is behind. Otherwise, selling the product will be very difficult.

As a final point, value princing sounds good as it avoids the initial outlay on the part of the customer and perfectly aligns the objectives of supplier and seller, but is not optimal for all companies or products. For example, in the case of insurance it is quite unlikely that value princing is an option, it is also difficult in services such as accounting or similar. By contrast, in the case of real estate sale is ideal. It should also be noted that these types of relationships must have a duration and a work behind it is not easy in many cases.

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