Value Based Pricing Strategy | HTC Walks Away From Revenue

Value Based Pricing Strategy | HTC Walks Away From Revenue

HTC, maker of smartphones like the Android, announced they’re not straying from the value based pricing strategy that HTC says supports their brand image and are declaring they will not be selling “cheap” smartphones despite increasing competition in the smartphone arena. [Read the Wall Street Journal article:”HTC Resists Push Toward Low-End Phones“]

Knowing when to walk away from low margin business is vital to maintaining profitability. ¬†When it comes to an effective value based pricing strategy, it’s said that a company is not managing its prices strategically until they turn down at least some business each year.

We all know walking away from revenues is difficult to do in tough times, but when you know it’s part of a meaningful pricing strategy, driving your company’s growth and desired brand image, turning away revenue becomes a predicted piece of your overall market strategy.

In addition to discipline, appropriate compensation plans for those that make or influence your price stategy are also necessary for implementing a vision of value-based pricing strategy, or a high price strategy.  Compensation plans that reward margin improvement, or better still, price improvement, go a long way to support profitability.

Contact a pricing consultant at Price Point Partners to determine if your value based pricing strategy is effectively supporting the company’s market strategy or if you need some pricing strategy consulting to start formulating a high price strategy to improve profits.

About the Author

Ralph Zuponcic

President, PricePoint Partners

Ralph is a national authority on strategic pricing. He has been featured in publications including The Wall Street Journal, Fortune Small Business, CFO Magazine and Marketing News.

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