Pricing According to the Potential Value Customers Provide

Should we treat all customers the same? Core values of excellent service and a mission to reach the world might lead to a resounding “Yes, of course we should!” But when it comes to pricing, the answer might be “Not necessarily.” In addition to pricing according to the value we provide customers, we can consider the potential value of customer relationships and drive targeted price increases that leverage differences in product, channels, and customers.

Working with thousands of midsized companies, the fractional CMO firm Chief Outsiders has seen how offering different pricing for different customers is a profitable strategy. Pete Hayes illustrates a valuable exercise in developing a long-range pricing plan for profitable revenue generation. He segments customers across four quadrants, weighing the cost to serve them against their market potential.