LexiconChannels
Value-based pricing
التسعير على أساس القيمة
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
- Hermann Simon, Confessions of the Pricing Man, Springer, 2015. (opens in a new tab)
- Thomas Nagle, Georg Müller & Evert Gruyaert, The Strategy and Tactics of Pricing, 7th ed., Routledge, 2023.
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.