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Introduction to the Impact of Pricing on Value

Introduction to the Impact of Pricing on Value

What you’ll learn to do: discuss how price affects the value of an organization’s products or services

Price determines how much revenue a company is going to earn. It determines whether the business is covering the costs to create and deliver its products. Price drives the financial health of the business.

In out initial discussion of pricing, we’ll start with the perspective of the customer. If the customer doesn’t see value in the product offering—and that includes pricing—company objectives won’t be met. Customer perceptions of value must be the central consideration in the pricing process.

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