B2B Value Models have an average ratio between price and value of 19.18%, ranging from 12.09% to 25.58%. This shows that high-stakes B2B vendors capture an important part of the value they deliver.
The median ratio between price and value is 19.84%, with the credible zone between 17.24% and 21.84%. Working with a ratio between price and value ratio under 12.09% might mean that vendors are leaving money on the table. Working with a ratio between price and value above 25.58% might trigger criticism and erode win-rate.
Ranges represent 25th-75th percentiles.
Clients are always looking for the best deals, however they also need partners that are financially able to execute.
A ratio between price and value ratio that is too high means the vendor is capturing too much value and won't appeal to the buyer, who will switch to another vendor.
A ratio between price and value that is too low might trigger criticism from the buyer, who will be looking for reasons why the vendor is that cheaper instead of being happy with the deal.
Not sharing ratio with clients.
The ratio between price and value is an internal data, used to ensure that you're building mutually fair business cases.
While clients are interested in ensuring you're not keeping the entire value, B2B customers will focus on their ROI more than your ratio between price and value.
Proven strategies to differentiate your value proposition and win more deals
You probably have an opportunity to charge more, or you will need to be more conservative with the value you deliver.
You're either charging too much, or need to increase the value you deliver by identifying new value drivers.
The ratio between price and value is a pricing optimization tool, use it to define acceptable prices ranges.
The ratio between price and value is not a selling tool, it's a strategic check for vendors. Customers do not need to see it.
If you don't measure it, they estimate it for you, and it's rarely in your favor.
Check whether your pricing actually reflects the value you deliver.
Build the link between your pricing and a defensible value number.
