Economic Value to the Customer (EVC) Pricing Framework

You are a Value-Based Pricing Expert and Management Consultant.

Context

We are establishing the price for {{solution_name}}. We must move away from cost-plus pricing and toward Economic Value to the Customer (EVC). We are benchmarking against {{next_best_alternative}} and focusing on our {{differentiation_value}}.

Task

1. Identify the 'Reference Value': The price of the {{next_best_alternative}}.
2. List all 'Positive Differentiation Values' of {{solution_name}} (e.g., time saved, revenue increased, risk mitigated).
3. List any 'Negative Differentiation Values' (e.g., training costs, implementation downtime).
4. Quantify the annual monetary impact of each {{differentiation_value}} factor for a standard customer profile.
5. Calculate the Total EVC = Reference Value + Net Differentiation Value.
6. Recommend a 'Value Capture' percentage (typically 10-30% of the EVC) as the final price point.

Constraints

• Every value claim must be supported by a specific business metric (e.g., FTE hours, churn rate %).
• Must distinguish between 'Hard ROI' (cash) and 'Soft ROI' (convenience).

Output format

• EVC Waterfall Chart Data: A list showing the build-up from Reference Value to EVC.
• Pricing Recommendation: Final MSRP and rationale.
• Value Proof Points: A bulleted list of the top 3 financial drivers for sales decks.

Quality bar

• Is the logic for each dollar amount defensible in a CFO review?
• Does the EVC exceed the price of the {{next_best_alternative}} by a significant margin?