LexiconChannels

Value-based pricing

التسعير على أساس القيمة

Related conceptAdded in version 1.0

Definition

Value-based pricing is the practice of setting a price from the value to the customer in that moment rather than from cost alone. Hermann Simon and Thomas Nagle made it practical; for channels it means asking what makes the app price gap worth it to a customer ordering from the sofa at 11 pm.

In plain words

Ask what it is worth to the customer at that moment, not just what it cost you.

Also searched as

  • value pricing
  • pricing by customer value
  • channel pricing
  • التسعير على أساس القيمة

Origin and credit

The concept comes from Hermann Simon; Thomas Nagle, Georg Müller and Evert Gruyaert. What the series adds is the application to Saudi multi-branch groups and the decision rule.

Original source

Where it is used

In the Doctrine and the Playbook

In Beneath Marketing

Related terms

How to cite this definition

Alhajj, S. (2026). “Value-based pricing”. In The Revenue Engineering Lexicon, version 1.0. Riyadh. https://seiflden.com/lexicon/value-based-pricing/

For the concept itself, cite the original: Hermann Simon, Confessions of the Pricing Man, Springer, 2015.

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