Setting prices based on value delivered and market position, not cost-plus — the highest-leverage decision most companies under-manage.
How to apply pricing strategy
- Understand the value your customer receives
- Test price sensitivity on segments
- Change price with a plan, not a memo
The #1 mistake to avoid
Leaving money on the table out of fear of pushback.
The metric that matters
Frequently asked questions
What is pricing strategy?
Setting prices based on value delivered and market position, not cost-plus — the highest-leverage decision most companies under-manage.
Why does pricing strategy matter for my business?
Because it directly affects how well your business performs — get it wrong and it costs you in measurable ways. Done right, it becomes a competitive advantage.
How do I apply pricing strategy?
Start with the practical steps: Understand the value your customer receives; Test price sensitivity on segments; Change price with a plan, not a memo. The key is to start small, measure, and expand what works.
What is the most common mistake with pricing strategy?
Leaving money on the table out of fear of pushback.
IDAP Finance Division
This glossary entry is maintained by the IDAP Finance division — specialists who deliver this capability on demand to businesses worldwide.