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  • Writer's pictureNikhil Kotcharlakota

Value vs Price

Is there a difference between value and price?


Absolutely!


I have seen people use value and price synonymously. However there is a clear difference between the two.


Value what the customer gets by using the product such as revenue impact, cost impact etc.


Price is what they pay to get the value.


Value gets measure by units called value metrics and Price by price metrics.


The eventual goal for any company is to align value metrics with price metrics so as they gain more value, they will be happy to pay more price.


Benefit = Value - Price


More details regarding these to follow.


Below is a snapshot of the different buckets in the value cascade.


Value Cascade


 


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