Situation

    Pricing a new product launch

    "We're about to launch, and the price is cost plus margin."

    Launch teams often set price from cost and a target margin because the value to the customer, and to the rest of the value chain, has never been quantified. Innovation premiums are lost on day one and are very hard to recover later.

    Signs you're in this situation

    If two or more of these sound familiar, this page is for you.

    • The launch price is cost plus a target margin.
    • Your stage-gate has no view on competition, the value chain or the value proposition.
    • There are only a few target customers, and each will negotiate hard.
    • Since your pricing expert left, nobody owns value pricing for new products.

    What we hear from clients

    Paraphrased and anonymized from recent conversations with marketing and commercial leaders.

    “Since our pricing lead left, no one is really doing value pricing for new launches.”
    “We need the full framework: true value in the customer's eyes, the market price, and how to sell it through the value chain.”
    “We're not sure whether we want you to do the analysis or show our people how to do it. Probably both.”

    Why it’s hard

    Value has to be quantified for each stakeholder in the value chain, from the user to the buyer to the payer, and compared with their next-best alternative. A price set too low at launch is very hard to raise later, and a product with no direct competitor still has one: the way customers solve the problem today.

    How we help

    Quantify value →

    Clinical, operational or economic value against the next-best alternative.

    Map the value chain →

    Who benefits along the chain, and who decides.

    Set the price position →

    Value Maps and scenarios for competitor response.

    Arm the launch team →

    A value story sales can defend with customers.

    All the ways we help →

    How an engagement usually runs

    Typical phases. Every engagement is scoped with you, and many clients start with one phase.

    PhaseTypical timingWhat happens
    Kick-offHalf a dayA working session with the launch team: product, business development, sales, marketing and innovation.
    Quantify value2–3 weeksValue creation by stakeholder, against the next-best alternative.
    Set the price1 weekValue Maps, price position and scenarios for competitor and customer response.
    Sell itBefore launchA value story and playbook the team can use through the value chain.

    Clients who faced something similar

    All case studies →

    Life Sciences · Delivery devices

    Recent work · 2025–2026

    Value pricing for a medical device launch

    A business unit was about to price a new drug-delivery device at cost plus, with no view of its value to the value chain. The opportunity was significant.

    Read the case →

    Medical Devices · Implant

    [Result]

    Proving the clinical and economic value of a new implant

    A minimally invasive implant offered a new option for high-risk patients. The business needed to show its value before launch.

    Read the case →

    Paper & Pulp · Polymer chemistry

    [Result]

    Placing scarce capacity where it creates the most value

    A polymer chemistry leader had a capacity-constrained technology for paper mills that could cannibalize its existing sales.

    Read the case →

    Academy program

    Pricing

    Two days applying Value Creation, Value Maps, Price Change Analysis and Transactional Pricing to an agreed pricing challenge in your business.

    $1,950 per person · Next: [Dates] Nov 2026

    See dates →

    Questions clients ask

    What is the difference between value pricing and market pricing?

    Value pricing starts from what the customer gains compared with their next-best alternative. Market pricing starts from competitor prices. Value pricing tells you how much room you have; market pricing tells you where competitors sit within it.

    How do you price a product that has no direct competitor?

    Compare it with how customers solve the problem today, including doing nothing or doing it themselves. That alternative sets the reference value.

    How long does a value pricing project take?

    A focused project for one product often takes about a month, starting with a kick-off session with the launch team.

    Do you do the analysis or train our team?

    Either or both. Many clients ask us to lead the first launch with their team so they can repeat the framework on the next ones.

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