Price: Understanding and Capturing Customer Value

of their industry. Companies with lower 

costs can charge lower prices, resulting in 

lower margins but higher sales and profits. 

However, other companies such as Apple, 

BMW and Steinway deliberately pay 

higher fees to be able to achieve higher 

prices and margins. For example, 

"homemade" Steinway pianos cost more 

than Yamaha production models. But the 

higher cost makes for better quality.

Pricing is based on value