Good Value Pricing
The core of the concept behind good value pricing is the value equation, which states that value is created when a consumer is able to buy something that is worth more to them than the price they paid. The amount of value created is the difference between what they would have paid and what they did pay. Value for a company is profitability.
In technical terms, "good value pricing" refers to any pricing strategy that tries to split value creation somewhat evenly between a firm and its customers. This is in contrast to raising prices as high as consumers will pay or pushing them as low as the company can afford.
In day-to-day discussion between marketers, "good value pricing" typically refers to a product and pricing combination that offers robust features, but at an approachable price. These products are typically in a middle ground between low-priced discount products and high-end luxury items.
Nelson started Marketsaurus in 2012 to build his web presence and share marketing ideas. He has a Bachelor's degree in Marketing from Southeast Missouri State University and an MBA from Saint Louis University. He currently works in digital advertising for a major agency.
His opinions are his own and not his employer's.