1404

Problem

Evaluate this statement: To move away from the commodity mentality, companies must view their products as customer solutions, and then sell their offerings on that basis.

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Step 1/3

Customers are the main source of income in a business for a company. A company takes into consideration the need and requirements of the customers that the company would serve while manufacturing the product.

While making any decision for producing a product the company must evaluate all the possible needs that the product would serve. After analyzing the need served by the company do the company should go for pricing the product.

The company should not set up a mentality wherein the focus should be on manufacturing a product first and then analyzing the needs that the product would fulfill. In that case the company would be hard-pressed to find the needs of the product.

Step 2/3

Based on the needs served by the product the company should take the decision of pricing the product. The company should analyze the segments to which the business is catering.

A company that is into B2B settings has a product in the offering that would lead to automation of processes across various business settings and in the process reduces the cost of operation of the company can demand a higher price for the product.

Step 3/3

A company should not price the product arbitrarily and have a pricing based on the needs and requirement served by the product. Thus, a company should price a product based on the needs that it serves and charge the customer based on those needs.