How do we best justify our pricing to potential customers who say “Company X is cheaper”? Are there strategies in pricing or packaging that can help reinforce our value despite a higher price?

Below is a structured approach based on our pricing strategy book, Price to Scale:

Directly tie your price to business outcomes
• Rather than focusing solely on the sticker price, demonstrate the return on investment (ROI) customers can expect. As mentioned in Price to Scale, a common approach is to promise deliverables like “5x to 10x ROI,” meaning the value accrued by the customer far exceeds the premium they’re paying.
Use packaging strategies to segment and communicate value
• Consider adopting a tiered "good–better–best" packaging approach. This method segments your offerings so that each package targets different customer needs. For example, your “best” tier might include advanced features and support that justify a higher price in terms of functionality and outcome.
• Alternatively, a modular strategy lets you attribute value to distinct features or modules so customers can pick and choose capabilities that directly align with their business challenges.
Reinforce the overall value proposition
• Focus discussions with potential customers on key differentiators that justify the higher price. Whether it’s superior features, enhanced delivery mechanisms, or better long-term support, even if competitors are cheaper, your product is positioned to solve more critical parts of their use case and deliver tangible business value.
• Explain how certain cost considerations—such as delivery expenses, integrated services, or ongoing support—translate to lower total cost of ownership over time.

In summary, Price to Scale recommends justifying a premium price by clearly linking it to measurable business outcomes (like ROI) and by designing well-structured, segmented packages that allow customers to see, firsthand, the value they’re paying for. This approach helps shift the conversation from cost alone to the overall value and improved performance your product delivers.