Value models are the key to value based pricing and value based sales. What are the characteristics of a good value model? Ibbaka is exploring this with a group of experts. Here we go to the source and elaborate on Tom Nagel’s approach to value modeling and what makes for a good value model.

Total Cost of Ownership (TCO), Return on Investment (ROI) and Value are ll used in price setting an justification. How are these related? Which approach works best? A value model is at the heart of a successful value program and critical to managing churn.

EVE, or Economic Value Estimation, quantifies the monetary value created by an offering for a particular customer versus their next best alternative. Since value is at the center of pricing strategy, modeling economic value estimation becomes critical in value-based pricing.