What is value based pricing strategy

Place a dollar amount on the differentiation.It's a pricing strategy behind some of the world's biggest companies.How do you value based pricing?This approach is often used in luxury markets, where customers are willing to pay more for products and services that they perceive as being of higher quality or offering greater value.This is why value based pricing is the holy grail of pricing models.Unfortunately, the most common pricing strategies and methodologies forget about the customer.

Value based pricing strategy is a pricing strategy where companies decide the price of their products or services depending on the value or estimated value perceived by the consumers.