What is value pricing?

• A. Pricing products strictly based on the cost to produce.
• B. Charging customers what they are willing to pay rather than the cost of the product.
• C. Selling products below cost to attract customers.
• D. Setting prices based on competitor’s price.

Answer: (B)

Value pricing centers on the value the product or service provides to the customer and their willingness to pay for that value, not the production cost. In practice, a community pharmacist would price based on the benefits the patient receives—such as improved health outcomes, convenience, and additional services like counseling or adherence support—rather than simply adding a markup on what it cost to make the product. This approach differs from setting prices strictly by cost, from matching or undercutting competitors, or from selling below cost to attract customers. So, charging customers what they are willing to pay for the perceived value is the essence of value pricing.