Case type 07
Pricing
Setting price with cost, competitors, and value to the customer, and judging price changes with the trade-off between margin and volume.
23 min1 lesson Last reviewed
Start the lesson Pricing
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.
- The most common mistake: setting the price only from cost, which often leaves money on the table.
- Cover cost and competitors quickly, spend your time on value to the customer, and test any price change against the volume it can lose or must gain.
By the end you will be able to
- 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
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