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Determine offer (product, services, delivery etc.) that delivers value for each level
Demonstrate value each offer creates
Price to reflect value created
Slide 1. Value segment 2. Value levels 3. Segment offers 4. Financial value demonstrated 5. Price Level 1 Offer 1 Value 1 C 1 x Value 1 Level 2 Offer 2 Vaue 2 C 1 x Value 1 … … … … Level n Offer n Value n C n x Value n
How to determine what customers are willing to pay?
Drill down into their costs Solution to save 60% of SW budget Financial value = Save $252 M per year Integrate (i) drilled down customer answer and (ii) internal view Slide Supplier’s view of proposed solution
Supplier Question Customer Answer What do you need? Reliable XYZ Why? Save SW Budget How much is SW budget? 70% of project cost How large is average project costs? $3 M/project How many projects/year 200 projects/year