Pricing: the guide
Setting price with cost, competitors, and value to the customer, and judging price changes with the trade-off between margin and volume.
Last reviewedWhat strong candidates can do
- Use the three angles on price and reach the value angle
- Estimate economic value to the customer, including the time value of money
- Calculate how much volume a price change can lose or must gain
Common questions
What is a pricing case?
Setting price with cost, competitors, and value to the customer, and judging price changes with the trade-off between margin and volume.
How do you approach a pricing case?
Use three lenses: cost sets the floor, value to the customer sets the ceiling, and competitor prices show where in that range you can land. Then check how volume responds to the price.
What is the most common mistake in a pricing case?
Setting the price only from cost, which often leaves money on the table.
Go deeper
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