How to build & use a value calculator
  2. Rest of Blueprinting (Steps 4-7)
  3. How to build & use a value calculator

5. Accounting for human behavior in pricing

Beyond financial considerations, you should also address customer risk and effort.

In the last four articles, we focused on gathering financial data for building a value calculator. Some people think getting the right price is all about financial calculations… but that’s not the case. Be sure to check out the last few slides in e-Module 8: Creating & Capturing Value at  

This is where we introduce the human behavioral aspects of getting a top price. Specifically, you’ll see our CARE model:

  • Confidence: The customers’ confidence in what you are claiming is critical to gaining higher pricing. It lets you capture a much larger part of the total value than if customers doubt you.
  • Audience: Reaching the right audience is equally important. If you’re telling your story to a customer contact who doesn’t care, you’re wasting your breath.
  • Risk: The more risk your customer must bear, the less they’ll be willing to pay.
  • Effort: If buying your product requires more effort, that will reduce the price they’ll pay.

You’ll see a dozen specific suggestions for improving your position in these four. We especially find that reducing customer risk and effort are well-rewarded.


Keywords: value calculator, customer value, value calculator example, customer risk, customer effort, CARE model, confidence, audience, risk, effort