The various pricing approaches discussed in the accounting profession these days can be really confusing. There’s a lot of overlap between them and many misconceptions, especially about “value pricing.” Defining any of these with a tidy little soundbite is tough so I’ve listed several characteristics and indicate where each falls along the spectrum of exhibiting that characteristic.
This chart compares a handful of approaches including my own, Advanced Pricing Methods® (or APM). APM is a built upon a foundation of worth-based pricing that harnesses best practices that a) position the seller for higher worth in a buyer’s eyes, and b) package multiple services together to achieve a buyer’s overarching goal.
In addition to the chart above, this written description might help explain why I don’t advocate using the phrase “value pricing” ever, preferring the term worth-based pricing instead.