Value pricing means establishing a price for your product based on what you believe the customer gains as a result of having your product (regardless of what it costs you to produce the product). When you sell a product, you are making an exchange of a product for $x of cash. You want two goals to be fulfilled after the transaction:

• Goal #1: You want customers to feel that they would rather have the product in their possession than $x in their pocket. This is the essence of value pricing.

• Goal #2: You would rather have $x in your bank (and the happy customer in your list of customers) than the product in your inventory.

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