Here’s a concise framework to implement this model effectively:

* Identify the Value Vectors: Determine how your product adds value through one or more of these three key areas:

* Increase in Revenue

* Decrease in Costs

* Decrease in Risk

* Calculate the Value Contribution: Once you understand where your product adds value, quantify the amount your product creates annually.

* Apply the Value-to-Price Multiple: Set your pricing based on the value created. Products aiding in revenue generation can command a higher price, followed by those reducing costs and then risk.

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