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Increases to pricing with little to no new features increases the price to value ratio in favor of pricing.
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Increases to value through new features, better service, etc. with no price increases swings the ratio in favor of value.
I know what you’re thinking - how do you create a numeric ratio to represent non-numeric values.
Pricing is numeric and it’s easy to compare to competition.
Value in the form of features is also easy to compare to competitors but it’s harder to assign a numeric value to it.
Other points of value
- services
How do we create a scoring mechanism
Features that you offer compared to your customers.
Competitor A offers feature 1, feature 2, feature 3, and feature 4 at a price of $15
Competitor B offers feature 2, feature 3, and feature 4 at a price of $15
Competitor C offers feature 3 and feature 4 at a price of $10
How to do this yourself
Tally y
Feature 2 is not equal to feature 3. Occasionally a feature will be valuable enough that it warrants counting as two especially when competition lacks this feature and customers rave about it and flock to your doors.