(My apologies for those of you coming here from the newsletter.) For those of you who only read the blog, you may want to check out the latest issue.

Particularly interesting, IMHO, is the Value Price Waterfall, which takes the price waterfall concept and flips it around to your customers’ perspective. Positive bars indicate areas where you generate positive differential value versus the customer’s next best choice (may be a competitor, may be buying nothing), while negative bars indicate areas where you do not add value. Defining the “buckets” of value, and assessing how you stack up for different customer segments can help you target and communicate prices more effectively. It will look something like this (the paper on the website has much larger images):

Comments are closed.