Value-based pricing starts with the outcome a customer gains and the alternatives available. Define the benefit first, such as time saved or loss avoided.
In the demo, changing outcome value shifts both the customer's retained value and the seller's share. A price below customer value still fails if it cannot cover costs.
Stated willingness to pay may differ from actual purchases. Validate an offer with transaction and churn data.
When to use
Use when benefits and alternatives can be compared; check how value differs by segment.