Knowledge Marketplace
My First Million

My First Million

The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.

Back to Trends
business-strategy

Businesses competing on value engineering rather than price cutting

Timeframe: Already occurring, accelerating over next 3-5 years

What's Changing

Shift from race-to-the-bottom pricing toward sophisticated value creation and communication

Driving Forces

Increased customer sophistication about value vs price

Pressure on profit margins from traditional price competition

Success stories of premium pricing strategies

Winners

  • Businesses that master value equation optimization
  • Companies with strong credibility and proof mechanisms
  • Service providers who can minimize customer effort

Losers

  • Commodity businesses without differentiation
  • Companies competing purely on price
  • Businesses that can't articulate value propositions

How to Position Yourself

1

Focus on outcome achievement rather than feature lists

2

Build credibility through proof and guarantees

3

Minimize customer effort and sacrifice requirements

4

Create urgency and scarcity around valuable outcomes

Early Signals to Watch

Premium pricing success stories in your industryCustomer requests for guarantees and proofIncreased focus on customer success metrics

Example Implementation

“SaaS company stops competing on price, instead offers implementation services, training, and success guarantees to charge 3x competitor pricing”