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Value pricing is defined by offering your product at a fair and reasonable price that makes sense to the purchasing customer.
as the name itself suggest price of the product/ service is set according to value perceived by the customer.

Value is subjective. Value is a benefit but a benefit is not necessarily of value to all customers. For example, a vendor offers free installation and free updates for his software. Customer-A considers "free installation" as "value"' because he has no technical knowledge and this will save him time and effort. Customer-B rates the free installation as "nice to have" but the drawcard or "value" is the free updates that will save him money in the long run. Customers do not assign value to the same benefits.

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