5Cs of Value Creation

The 4Ps of marketing are widely known by lots of people in business. How much attention are you paying to the most powerful P – PRICE? A quick google search reveals lots of articles and posts on the NEED to price right. But very few go so far as to explain HOW to price right and why value creation is critical to pricing right.

Our thoughts on the most powerful P are:

🔥 PRICE IS VALUE 🔥

⭐️ The foundation of any pricing strategy is VALUE CREATION. This requires a deep understanding of how your products and services create value for your customers.

⭐️ Understanding value created by a product requires intimate knowledge of your customers’ needs.

⭐️ Understanding the value of your offering versus competition is key. This enables you to develop a strong and compelling value proposition and to deliver solutions that add value to your customers. Solutions that your customers will pay for.

⭐️ Your customers will not necessarily understand the value delivered by your products and so you must communicate the value to your customers and educate them.

⭐️ Profitably is very important to every business and you want to ensure that you are capturing a share of the value in your price.

The 5Cs of value creation is a great framework to use for pricing:

1️⃣ Comprehend Value to the Customer

2️⃣ Create Value for the Customer

3️⃣ Communicate Value to the Customer

4️⃣ Convince the Customer to Pay for Value

5️⃣ Capture Value with Strategic Pricing

What are your thoughts on the most powerful P of the 4Ps?