Value-Based Pricing

1. Group Pricing

1.1. set different prices for different consumers

1.2. Like giving students a discount

2. maximize profits

2.1. make total value as large as possible

2.2. extract as much as you can

3. Self-selection

3.1. Offer versions of product tailored to the needs of different customers

3.2. design versions to meet the needs of different groups of customers

4. Product Line

4.1. identify dimensions of product: timeliness

4.2. What is the customer willing to pay for this product?

5. Sell your product at different prices to different consumers

5.1. what are they willing to pay?

5.2. quality of product

6. Personalized Pricing

6.1. knowledge about customers

6.2. versioning

7. Versioning

7.1. Design versions to meet customer differences

7.2. Offering a product at a higher price, then lowering it