"Without application, the benefits of knowledge cannot be fully achieved." - Roger J. Best
8.1 Value-in-Use Pricing (Figure 8-6)
The ownership costs for a business's products that extend the life of machine fluids appear in the first example. Assess the economic value for several price points and select a price that creates a meaningful value for customers.
In this example, let's assume that the usage cost for the business's product is further reduced to $2.50 per pound. How would this affect customer value and the perception of the value price of $2.45?