Cost-Plus vs Value: Choose Your Strategy

A tiny shift in price can boost profits more than a big jump in sales—yet most companies still set prices by “cost plus a bit.” In this episode, we drop into two boardrooms: one obsessed with costs, one obsessed with value—and only one survives the next price war.

McKinsey once showed that a 1% price move can swing profit by 6–8%—yet most teams still debate pennies on cost while ignoring dollars in perceived value. In this episode, we zoom in on the *choice* behind every price: are you anchoring on what it costs you to make, or on what it’s worth to the customer?

Think of two product managers launching nearly identical tools. One opens a spreadsheet, adds a safe markup, and calls it a day. The other sits with sales, studies win–loss deals, and asks customers what outcomes actually matter. Same product, completely different ceiling on what either can ever charge.