“Costs do not determine price, rather, price determines costs and value determines price.”
I have been reading “Pricing on Purpose: Creating and Capturing Value” by Ron Baker, and it really resonates with me. Having worked in the creative service industry my entire professional life, I also strongly believe in value pricing.
I love how Baker focuses on the customer experience in defining the nature and value of the relationship, and he keeps pounding on the absurdity of cost-plus pricing.
Since value is subjective, pricing is definitely an art, not a science. I never think there is a formula anyway.
What other books do you recommend on the topic of value pricing?