A Framework for Value-Based Pricing

Positioning in a Crowded Market

As a marketing leader who's guided multiple companies through positioning exercises, I've observed a common thread: too many organizations treat positioning as just another marketing task. In reality, it should be your most strategic initiative of the year. So I sat down with marketing executive from Clari, Gong, and Salesforce Einstein — Julien Sauvage [https://www.linkedin.com/in/julien-sauvage/], to get his biggest tips. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit distributionmoat.substack.com [https://distributionmoat.substack.com?utm_medium=podcast&utm_campaign=CTA_1]

A Framework for Value-Based Pricing

Here’s a concise framework to implement this model effectively: * Identify the Value Vectors: Determine how your product adds value through one or more of these three key areas: * Increase in Revenue * Decrease in Costs * Decrease in Risk * Calculate the Value Contribution: Once you understand where your product adds value, quantify the amount your product creates annually. * Apply the Value-to-Price Multiple: Set your pricing based on the value created. Products aiding in revenue generation can command a higher price, followed by those reducing costs and then risk. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit distributionmoat.substack.com [https://distributionmoat.substack.com?utm_medium=podcast&utm_campaign=CTA_1]