Manufacturers Who Get Pricing Right Grow Faster. Here's How.

Value-based pricing has developed a bad reputation and it’s understandable why.

Over the weekend, we came across another post discrediting value pricing. It made us reflect on a broader reality: value pricing is often misunderstood.

Many posts on LinkedIn highlight poor applications of value pricing and they are right to point out the confusion it can cause when used incorrectly.

True value pricing is not about making up numbers, exploiting customers, or creating unnecessary complexity. It is about understanding customer value, evaluating the competitive landscape, and quantifying tangible benefits in a fair and structured way.

However, when value pricing is poorly explained or implemented, skepticism is entirely natural.

Done properly, value pricing is none of those things.

Many manufacturers and distributors still rely on cost-plus pricing, setting prices based on production costs and a fixed margin.

The problem? Cost-plus pricing does not reflect the true, measurable value your product creates for customers.

It applies a one-size-fits-all logic that often leaves significant value uncaptured — both for your business and your customers.

Value pricing asks important questions:

▶️ What measurable value does the product deliver?
▶️ How much time, money, or risk does it save?
▶️ How much additional revenue can it generate for the customer?
▶️ What share of that value ensures the price is fair and sustainable?

A practical example:

Imagine a manufacturer developing a new industrial filter that extends equipment life by 20% and boosts production efficiency.

1️⃣ £100,000 in annual maintenance savings
2️⃣ £200,000 in additional annual revenue from increased uptime

By pricing based on a fair share of these tangible customer gains, both savings and enhanced productivity, businesses can drive profitable growth and deliver greater value to their customers.

No guesswork. No random numbers. Just smart, structured pricing strategy.

For manufacturers and distributors, pricing is not just about covering costs, it is a powerful lever for growth, innovation, and competitive advantage.

Manufacturers and distributors who master value pricing achieve stronger margins, faster growth, and greater customer loyalty.

If you’re ready to put a smarter pricing strategy in place, let’s talk.