Value First, Then Price Building Value-Based Pricing Strategies

Value-based pricing – pricing a product or service according to its value to the customer rather than its cost – is the most effective and profitable pricing strategy. Value First, Then Price is an innovative collection that proposes a quantitative methodology to value pricing and road-tests this methodology through a wide variety of real-life industrial and B2B cases. This book offers a state-of-the art and best practice overview of how leading companies quantify and document value to customers. In doing so, it provides students and researchers with a method by which to draw invaluable data-driven conclusions, and gives sales and marketing managers the theories and best practices they need to quantify the value of their products and services to industrial and B2B purchasers. The 2nd edition of this highly-regarded text has been updated in line with current research and practice, offering three new chapters covering new case studies and best practice examples of quantified value propositions, the future of value quantification, and value quantification for intangibles. With contributions from global industry experts this book combines cutting edge research on value quantification and value quantification capabilities with real-life, practical examples. It is essential reading for postgraduate students in Sales and Marketing with an interest in Pricing Strategy, sales and pricing specialists, as well as business strategists, in both research and practice.

Part I: Introduction 1. Introduction Andreas Hinterhuber and Todd C. Snelgrove Part 2: Selling Value: Value Quantification Capabilities 2. Value First, Then Price: The New Paradigm of B2B Buying and Selling Andreas Hinterhuber, Todd C. Snelgrove and Bo-Inge Stensson 3. Interview: Processes and capabilities for value quantification Robert Russell and Andreas Hinterhuber 4. Muddling through on Customer Value in Business Markets? Todd C. Snelgrove and James C. Anderson 5. Interview: Nurturing value quantification capabilities in Strategic Account Managers Andreas Hinterhuber, Todd C. Snelgrove and Bernard L. Quancard 6. Salesforce Confidence and Proficiency: The Main Cornerstone of Effective Customer Value Management Gary Kleiner Part III: Selling Value: Best Practices in Value Quantification 7. Value quantification: Processes and best practices to document and quantify value in B2B Andreas Hinterhuber 8. Quantifying your value so customers are willing and able to pay for it Todd C. Snelgrove 9. An inside-look at value quantification of competitive advantages: how industry leaders prove value to their customers Evandro Pollono 10. Value quantification for services Todd C. Snelgrove 11. Quantifying intangible benefits: best practices to increase willingness to pay while creating longer-lasting customer relationships Evandro Pollono and Paolo De Angeli 12. Towards a shared understanding of value in B2B exchange: Discovering, selecting, quantifying, and sharing value Pekka Töytäri and Risto Rajala Part IV: Buying on Value: Value Quantification and B2B Purchasing 13. Value first, cost later: Total Value Contribution as a new approach to sourcing decisions John V. Gray, Susan Helper and Beverly Osborn 14. Interview: Selling value to purchasing Todd C. Snelgrove and Bo-Inge Stensson 15. Using Best Value to Get the Best Bottom Line Kate Vitasek 16. Value Selling: The crucial importance of access to decision makers from the procurement perspective Rob Maguire 17. The Sourcing Continuum to Achieve Collaboration and Value Kate Vitasek Part V: Value Quantification and Organizational Change Management 18. Interview: Implementing value quantification in B2B Andreas Hinterhuber and Matthias Heutger 19. Interview: The ring of truth - value quantification in B2B services Andreas Hinterhuber and Pascal Kemps Part VI: Buying and Selling on Value: Value Quantification Tools 20. A Question of Value: Customer Value Mapping versus Economic Value Modeling Thomas T. Nagle and Gerald Smith 21. Why start-ups should consider using value propositions Lennart Foos and Markus Kirchberger 22. Creating and Sustaining Competitive Advantage Through Documented Total Cost Savings Tim Underhill Part VII: Epilogue 23. A call to action: value quantification in B2B buying and selling Todd C. Snelgrove 24. Quotes and Statistics to Help you on Your Value Selling Journey Todd C. Snelgrove 25. The Present and Future of Value Quantification Andreas Hinterhuber and Todd C. Snelgrove

Andreas Hinterhuber is Associate Professor at the Department of Management at Università Ca' Foscari Venezia, Italy. Todd C. Snelgrove is Senior Managing Partner at Experts in Value in Clarkston, MI, USA.