What is Value Based Pricing?

Is the pricing strategy that determines how you price your products or services, based on how your customers value them. This is a customer-focused pricing strategy, and it requires merchants to understand and know their customer’s perceptions and needs. This strategy encourages businesses to consider the value the market places on the product or service as the starting point. When pricing on value, most experts recommend using the 10x rule, which means the intrinsic value provided should always be 10 times its perceived cost.