CRO · Framework · Advanced · Saves 60+ hours
Value-Based Pricing Model
A framework for implementing value-based pricing.
What's included
- Value quantification methodology
- Customer value analysis
- Price anchoring strategies
- Value communication
- Implementation guide
Best used when
- Moving from cost-plus pricing
- Selling high-value solutions
- Differentiating on outcomes
- Justifying premium pricing
The template
The Template
VALUE QUANTIFICATION
Value Calculation Framework
VALUE-BASED PRICING FORMULA
ECONOMIC VALUE CALCULATION:
1. REFERENCE VALUE:
Best alternative price: $_____
2. DIFFERENTIATION VALUE:
Positive Differentiators:
+ Time savings: $_____ /year
+ Revenue increase: $_____ /year
+ Cost reduction: $_____ /year
+ Risk reduction: $_____ /year
= Total positive: $_____
Negative Differentiators:
- Switching costs: $_____
- Learning curve: $_____
- Integration effort: $_____
= Total negative: $_____
3. TOTAL ECONOMIC VALUE:
Reference + Positive - Negative
= $_____ total value
4. VALUE-BASED PRICE:
Capture rate: ___% of value
Price: $_____ /year
CAPTURE RATE GUIDELINES:
SMB: 10-20% of value
Mid-market: 15-25% of value
Enterprise: 20-30% of value
Value Driver Matrix
| Value Driver | Annual $ Impact | Confidence | Proof Point |
|---|---|---|---|
| $ | High/Med/Low | ||
| $ | High/Med/Low | ||
| $ | High/Med/Low | ||
| Total Value | $ |
VALUE COMMUNICATION
Value Story Framework
VALUE COMMUNICATION
OPENING:
"Companies like yours typically see
[X outcome] from our solution."
QUANTIFICATION:
"Based on your [inputs], we calculate
a value of $_____ annually, which
includes..."
VALUE BREAKDOWN:
1. _______________: $_____
2. _______________: $_____
3. _______________: $_____
PRICE POSITIONING:
"At $_____, you're capturing just
[X]% of the value we deliver,
with ROI of [X]x."
RISK MITIGATION:
"If we only deliver [Y]% of that
value, you'd still see [Z] ROI."
Frequently asked questions
What is the Value-Based Pricing Model?
A framework for implementing value-based pricing.
Who is the Value-Based Pricing Model for?
It is built for CROs and their teams working on Pricing & Packaging. The AI coach adapts it to your company, stage, and goals.
How long does the Value-Based Pricing Model take to use?
It saves roughly 60+ hours versus building from scratch. Our AI coach can tailor the framework to your situation in minutes, then hand you a step-by-step plan.
Is the Value-Based Pricing Model free?
Yes. You can read the full framework and start getting coached through it for free. Sign in to save your tailored version and track your next steps.
How does the AI coach help with the Value-Based Pricing Model?
The coach teaches you the framework, asks a few questions about your business, tailors the framework to you, and gives you measurable next steps to execute.