Talk:Value-based pricing/Archives/2012

Medicines

In the UK and other countries there is a move towards 'value-based pricing' for medicines. In the UK, VBP will replace the current Pharmaceutical Price Regulation Scheme in 2014. If there are no objections I will add a new section for this topic. ChrisSampson87 (talk) 14:48, 18 September 2012 (UTC)

That's odd, there used to be a section on that, that has been deleted. It read like this:

Value-based pricing is being considered by the UK government as a way to price pharmaceuticals on the NHS. According to proposals under consultation, the scheme would be introduced in 2013 when the current agreement, the Pharmaceutical Price Regulation Scheme , comes to an end. Exactly how the scheme will operate is still being discussed

Are you OK to reinstate this? HenryScow (talk) 18:54, 1 November 2012 (UTC)

How strange. Thanks for this. I'll put some thought into it and write an updated version.

ChrisSampson87 (talk) 13:55, 6 November 2012 (UTC)

Rewrite article

Any objections if I rewrite the article along the following lines?:

Value based pricing is a concept for companies to determine the price of their goods based on the perceived value the product generates for the customer. The contrast to "Value based pricing" is "Cost based pricing" in which the price of the goods is determined based on the costs the company had in its manufacture (plus a profit margin).

Goods that are very intensely traded (e.g. oil and other commodities) or that has highly sophisticated customers in large markets (e.g. automotive industry) usually are sold based on cost-based-pricing. Value-based-pricing is most successful when products are sold based on emotions (fashion), in niche markets, in shortages (e.g. drinks at open air festival at a hot summer day) or indispensible adds-ons (e.g. printer cartridges, headsets for cell phones).

Long term, by definition, prices based on value-based-pricing are always higher or equal to the prices derived from cost-based-pricing (if they were lower, it would mean that the actual value perceived by the customer is lower than the costs of producing the good plus a profit margin, meaning that companies would long term not be interested to produce and sell at that price).

Jaeljojo (talk) 23:03, 7 July 2012 (UTC)

rewrote it. There is tons of literature about this so I think we are fine here just to mention the basics. Please let me know if you have issues with this Jaeljojo (talk) 16:11, 8 July 2012 (UTC)

Business strategy?

Anyone else have an issue with the sentence 'Value optimised pricing is a business strategy.' I know I'm delving into an often misunderstood area, but a pricing strategy is not a business strategy. Setting the right price is undoubtedly an aspect of doing business but it is not a business strategy in itself. This is another case of the often misused term 'strategy.' I suggest the term 'pricing mechanism' rather than 'business strategy.' — Preceding unsigned comment added by Talktruthjourno (talk • contribs) 21:07, 13 October 2012 (UTC)