Value-based Pricing Strategy Research Articles

Economic evaluation of camrelizumab plus rivoceranib versus sorafenib as first-line therapy for unresectable hepatocellular carcinoma in the United States and China.

Camrelizumab combined with rivoceranib has been proven effective for treating unresectable hepatocellular carcinoma (uHCC). However, their higher prices than sorafenib could impose a substantial economic burden on patients. This study aimed to evaluate the relative cost-effectiveness of the combination of camrelizumab and rivoceranib versus sorafenib as first-line therapy for patients with uHCC from the perspective of the US and Chinese payers. Using data from the CARES-310 trial, a partitioned survival model (PSM) was developed, considering the perspectives of the US and Chinese payers. The model employed a 15-year time horizon and a biweekly cycle. Direct medical costs and utility data were collected from previous studies and open-access databases. Primary outcomes included quality-adjusted life years (QALYs) and the incremental cost-effectiveness ratio (ICER). Price simulations, sensitivity analyses, and subgroup analyses were conducted. The ICER for the US and China was $122,388.62/QALY and $30,410.56/QALY, respectively, falling below the willingness-to-pay (WTP) thresholds of $150,000/QALY for the US and $35,898.87/QALY for China. Price simulations indicated the cost-effectiveness of camrelizumab plus rivoceranib when the price of camrelizumab (200mg) remained below $6275.19 in the US and $558.09 in China. The primary determinant of cost-effectiveness in both regions was the cost of camrelizumab. The combination of camrelizumab and rivoceranib is a cost-effective first-line therapy for uHCC in both the US and China. Lowering their prices could significantly influence their cost-effectiveness and accessibility to patients. These findings will guide clinicians in treating uHCC and help decision-makers formulate value-based drug pricing strategies.

A comprehensive value-based method for new nuclear medical service pricing: with case study of radium [223Ra] bone metastases treatment

ImportanceInnovative nuclear medicine services offer substantial clinical value to patients. However, these advancements often come with high costs. Traditional payment strategies do not incentivize medical institutes to provide new services nor determine the fair price for payers. A shift towards a value-based pricing strategy is imperative to address these challenges. Such a strategy would reconcile the cost of innovation with incentives, foster transparent allocation of healthcare resources, and expedite the accessibility of essential medical services.ObjectiveThis study aims to develop and present a comprehensive, value-based pricing model for new nuclear medicine services, illustrated explicitly through a case study of the radium [223Ra] treatment for bone metastases. In constructing the pricing model, we have considered three primary value determinants: the cost of the new service, associated service risk, and the difficulty of the service provision. Our research can help healthcare leaders design an evidence-based Fee-For-Service (FFS) payment reference pricing with nuclear medicine services and price adjustments.Design, setting and participantsThis multi-center study was conducted from March 2021 to February 2022 (including consultation meetings) and employed both qualitative and quantitative methodologies. We organized focus group consultations with physicians from nuclear medicine departments in Beijing, Chongqing, Guangzhou, and Shanghai to standardize the treatment process for radium [223Ra] bone metastases. We used a specially designed ‘Radium Nuclide [223Ra] Bone Metastasis Data Collection Form’ to gather nationwide resource consumption data to extract information from local databases. Four interviews with groups of experts were conducted to determine the add-up ratio, based on service risk and difficulty. The study organized consultation meeting with key stakeholders, including policymakers, service providers, clinical researchers, and health economists, to finalize the pricing equation and the pricing result of radium [223Ra] bone metastases service.Main outcomes and measuresWe developed and detailed a pricing equation tailored for innovative services in the nuclear medicine department, illustrating its application through a step-by-step guide. A standardized service process was established to ensure consistency and accuracy. Adhering to best practice guidelines for health cost data analysis, we emphasized the importance of cross-validation of data, where validated data demonstrated less variation. However, it required a more advanced health information system to manage and analyze the data inputs effectively.ResultsThe standardized service of radium [223Ra] bone metastases includes: pre-injection assessment, treatment plan, administration, post-administration monitoring, waste disposal and monitoring. The average duration for each stage is 104 min, 39 min, 25 min, 72 min and 56 min. A standardized monetary value for medical consumables is 54.94 yuan ($7.6), and the standardised monetary value (medical consumables cost plus human input) is 763.68 yuan ($109.9). Applying an agreed value add-up ratio of 1.065, the standardized value is 810.19 yuan ($116.9). Feedback from a consultation meeting with policymakers and health economics researchers indicates a consensus that the pricing equation developed was reasonable and well-grounded.ConclusionThis research is the first study in the field of nuclear medicine department pricing methodology. We introduce a comprehensive value-based nuclear medical service pricing method and use radium[223Ra] bone metastases treatment pricing in China as a case study. This study establishes a novel pricing framework and provides practical instructions on its implementation in a real-world healthcare setting.

Pricing strategy and firms profitability

This paper summarizes the arguments and counterarguments within the scientific discussion on the issue price decision and its significantly impact on the firm profitability and market competitive position, pricing strategy considered to be fundamental tool for market growth, in today’s extremely competitive market, adopting a pricing plan is essential. In response to the demands of the industry, several pricing models have been developed under the influence of multiples factors (organization and management attitude, product cost structure, industry, and gap between local and target markets). The purpose of this paper is to review the price objectives and price methods that were adopted to set prices as well as their impact on the profitability of the firms. One of the most crucial managerial choices is the definition of the price policy since it has an impact on business profitability and market competitiveness. Despite the essential role that costs play in businesses. The objectives of this research were to develop and evaluate a theoretical model that would illustrate how pricing strategy affects business profitability. This study used the theoretical literature review technique to answer the following question: how product pricing methods impact on firm profitability? though we found that the pricing objectives are a function of pricing formula and methods. More important we found that firms are positively influenced by the value-based pricing strategy and high price, in contras its negatively influenced by the low price, this implies that prices policies affected the profitability of the company hence, this explained the importance of strategic consideration of the pricing, strategies, methods and process must be critically evaluated by management. The research results can be useful as baseline to further develop model that enable firms to quantify the impact of pricing strategies.

Drug Pricing of Domestic Anti-PD-L1 Antibody Adebrelimab: Cost-Effectiveness Analysis of the First-Line ES-SCLC Treatment in China.

The market price of adebrelimab, the first Chinese-developed anti-PD-L1 antibody used as a first-line treatment for extensive stage-small-cell lung cancer (ES-SCLC), has garnered significant public attention. This study sought to investigate the affordable price of adebrelimab for Chinese patients with untreated ES-SCLC through a cost-effectiveness analysis. We conducted a cost-effectiveness analysis using a Markov model, incorporating a what-if scenario of adding adebrelimab to first-line etoposide/platinum (EP) chemotherapy is cost-effective for ES-SCLC patients from the perspective of the Chinese healthcare system. The model included three mutually exclusive health states, with transition probabilities derived from the CAPSTONE-1 trial. Health state utilities and costs were acquired from a myriad of authoritative sources. We compared the incremental cost-effectiveness ratios (ICERs) for adebrelimab plus EP chemotherapy (AEP) versus EP with a willingness-to-pay threshold of $37,654 per quality-adjusted life-years (QALYs) to estimate the affordable price ceiling of the upcoming adebrelimab. For the entire ES-SCLC population, the estimated price ceiling of adebrelimab/mg was $0.542 (95% CI, $0.542-$0.552). Subgroup analyses found that the highest price ceiling of adebrelimab/mg was observed in ES-SCLC patients with lactate dehydrogenase concentration ≤ upper normal limit [$0.824 (95% CI, $0.815-$0.830)]; and the lowest was found in ES-SCLC patients with liver metastasis [$0.252 (95% CI, $0.250- $0.256)]. Sensitivity analysis revealed a heightened probability of cost-effectiveness for the first-line AEP as the price of adebrelimab decreased, encompassing both the entire ES-SCLC population and its subgroups. The affordable price range for adebrelimab/mg Chinese patients with untreated ES-SCLC was estimated to be between $0.252 and $0.824, with variations observed across different subgroups. In the context of universal healthcare coverage, our study provides valuable evidence to inform the implementation of a value-based pricing strategy for cancer treatment.

Price Identification And Financial Feasibility Study of Hydroponic Agriculture Iot Solution Launch Project at PT XYZ

Since 2015, the Internet of Things technology has grown significantly, reaching over 400 million users by 2022 in Indonesia. Recognizing the potential, PT XYZ, an innovative Indonesian telecommunications company, intends to launch an IoT solution for hydroponic agriculture. The launch project requires an initial investment of around Rp 500 million. Given that amount, PT XYZ aims to determine the selling price using a value-based pricing strategy and assess the project's financial feasibility and risks before proceeding. Primary and secondary data will be utilized in this research to determine the customer's willingness to pay (WTP), Capital budgeting cash flow, which includes the hypothetical price of IoT, calculating the weighted average cost of capital (WACC), free cash flow to the firm (FCFF), and terminal value. The study used various capital budgeting techniques, such as net present value (NPV), profitability index, payback period, internal rate of return (IRR), and Excel's goal seek feature, to determine the IoT solution's pricing. A risk analysis using sensitivity and Monte Carlo simulations have conducted. The research finds that the present value of benefits, or WTP, for the IoT solution, is Rp 90,708,238. Considering PT XYZ's targeted internal rate of return of 20%, the determined selling price is Rp 20,120,408, which lies within the customer's WTP, making the project feasible. Capital budgeting techniques show a payback period of 4.08 years, an NPV of Rp 3,424,935,505, and a profitability index of 8.21 over five years, indicating positive outcomes. However, the sensitivity analysis reveals that a change in product price, cost of goods sold, and salary expenses will significantly impact the NPV, resulting in a 12.69% risk, with profitability remaining high at 87.31%. In conclusion, PT XYZ's hydroponic agriculture IoT solution launch project is considered feasible, considering potential risks and mitigation strategies.

Pricing model, engagement model and firm performance: evidence from Indian data science industry

PurposeData science industry is a multidisciplinary field that deals with a large amount of data and derives useful information for taking routine and strategic business decisions. The purpose of this article is to examine the relationship between pricing models, engagement models, and firm performance (FP). This study also aims at uncovering the most effective pricing model and engagement model for improving FP.Design/methodology/approachIndian data scientists were the respondents of the study. A total of 213 responses were carefully chosen. The data were analyzed using structural equations on Statistical Package for Social Sciences-Analysis of Moment Structures (SPSS-AMOS) version 25 software.FindingsThe findings of the study suggested the positive and significant impact of pricing models and engagement models on FP. Value-based pricing strategies have the maximum impact on FP. On the other hand, managed services have a higher influence on FP.Originality/valueBy developing a multi-faceted framework, this study is a novel contribution to the field of business strategy, especially for the data science industry.

The effect on pricing strategies in the process of strategic decision making in view of cost of produced goods

This research examined the effect of the cost of produced goods on pricing strategies in the process of strategic decision. Also examined in this research is the extended effect of pricing strategies on consumers purchase decision making. The research aimed to answer questions on the extent to which cost of produced goods affects pricing strategies of products, how decision makers realize the value-based pricing strategy of corporations and the extent to which pricing policy help consumers to make purchase decisions. This research being historical and descriptive depended basically on secondary sources of information. The research used a historical and descriptive method and depended basically and simply on secondary devices as sources of data. Results from the data acquired reference that customers have an understanding of fair value reflected in prices of the firm's products. The researcher will use both analytical and descriptive methods which appropriate the context of the current research which is generally based on the theoretical underpinnings and fieldwork. The outcomes indicate that the cost of produced products used in organizations provides quality information; there is an effect of this information on the pricing decision-making; there are parts in which pricing strategy much relied on the information provided by the cost systems.

Effects of market orientation, innovation strategies and value-based pricing on market performance

PurposeThis study aims to propose and test a theoretical model that contemplates antecedent constructs of organizational performance, as well as the interaction among them.Design/methodology/approachA survey was conducted with 151 Brazilian exclusive stores in the planned furniture segment. The data analysis was performed using two statistical techniques, focused on hierarchical regression and mediation and moderation tests.FindingsAmong the main results of the survey are the direct and significant effects of value-based pricing and innovation strategies and the indirect effect of market orientation on market performance. As for moderation, the authors identified that profitability moderates the relationship between value-based pricing and market performance, and the degree of sales projection moderates the relationship between market orientation and market performance.Originality/valueThe insertion of value-based pricing as a variable in quantitative analysis of market performance meets the lack of academic research. When the constructs are combined or interacted with each other, they have a stronger and more significant effect on performance. In addition, this work proposes two moderating variables that can interfere in the relationship between the analyzed constructs (profitability and sales projection). It was identified that the relationships between the constructs and that the orientation towards the market (despite not directly impacting market performance) interfere with the relationship based on mediation of variable innovation strategies and value-based pricing.

Factors Affecting Consumer Purchase Intention of Smartphones: A Case of Hawassa City

The growing need and fast development of technology in the era of globalization, free markets, and more fierce competition made the company produce products to satisfy the diverse needs of customers, particularly within the smartphone industries. The major objective of this study was to assess factors affecting consumers' purchase intention of smartphones; a case of Hawassa city. A structured schedule that has three sections was used to collect the primary data. A complete sample of 385 consumers selected by employing the population precision method. The enumerator administered schedule is distributed to all the selected consumers. The research used a systematic random sampling technique at the time of data collection. However, only 356 consumers responded genuinely, and hence, the response rate was 92.46 percent. Descriptive and inferential statistical tools such as; frequency tables, percentages, means, standard deviations, Pearson correlation, and multiple regression analysis were used to data analysis. The result of the adjusted R square is 0.645, which demonstrates that 64.5 percent of purchase intention variation can be explained by the independent variables. Based on the statistical analyses, all variables namely price, product feature, brand name, advertising, and social influence have a positive relationship with the consumers’ purchase intention. The researcher has drawn the following recommendations. Smartphone manufacturers and marketers should carry out a periodic survey to help in identifying new features and decide which ones to add to its product, follow a value-based pricing strategy, strive to create positive word of mouth among consumers, advertising messages should be designed in a manner that is clear, understandable and not offensive to the consumers and build their strong brand name; establish the link of their brand name with the consumers through unique sources of communication. Keywords : Purchase Intention, Smart Phone, Hawassa city DOI: 10.7176/EJBM/12-25-03 Publication date: September 30 th 2020

Ценова стратегия на база ценност на продукта за клиента: резултати от емпирично изследване за България (Value-Based Pricing Strategy: Results from an Empirical Study for Bulgaria)

The aim of the present article is to present the results from an empirical study on the use of the value-based pricing strategy by companies operating in Bulgaria. To achieve this goal, research has been done regarding the pricing strategies used by companies operating in Bulgaria with a focus on value-based pricing strategy; the opinion of CEOs/marketing directors/managers, etc. has been surveyed concerning the barriers to the use of the value-based strategy and their attitudes regarding the use of this strategy in the future.

Factors Affecting Consumer Purchase Intention of Smartphones: A Case of Hawassa City

The growing need and fast development of technology in the era of globalization, free markets, and more fierce competition made the company produce products to satisfy the diverse needs of customers, particularly within the smartphone industries. The major objective of this study was to assess factors affecting consumers' purchase intention of smartphones; a case of Hawassa city. A structured schedule that has three sections was used to collect the primary data. A complete sample of 385 consumers selected by employing the population precision method. The enumerator administered schedule is distributed to all the selected consumers. The research used a systematic random sampling technique at the time of data collection. However, only 356 consumers responded genuinely, and hence, the response rate was 92.46 percent. Descriptive and inferential statistical tools such as; frequency tables, percentages, means, standard deviations, Pearson correlation, and multiple regression analysis were used to data analysis. The result of the adjusted R square is 0.645, which demonstrates that 64.5 percent of purchase intention variation can be explained by the independent variables. Based on the statistical analyses, all variables namely price, product feature, brand name, advertising, and social influence have a positive relationship with the consumers’ purchase intention. The researcher has drawn the following recommendations. Smartphone manufacturers and marketers should carry out a periodic survey to help in identifying new features and decide which ones to add to its product, follow a value-based pricing strategy, strive to create positive word of mouth among consumers, advertising messages should be designed in a manner that is clear, understandable and not offensive to the consumers and build their strong brand name; establish the link of their brand name with the consumers through unique sources of communication.

Pengembangan Usaha Lampu Hias Pipa Mg Craft Melalui Kegiatan Pengabdian Kepada Masyarakat Universitas Prasetiya Mulya

Community Development is a lecture activity held by Prasetiya Mulya University for semester 5 students. On this occasion our group obtained business partners in the Wangunjaya Village, Cugenang District. Who owns the business consists of decorative lights which have raw materials consisting of paralon pipes made of PVC (Polyvinyl Chloride). Starting from the operational aspects, financial, human resources to marketing. The target that our group have discussed is to expand the scope of this business, so that the number of people who know this product and its development can increase significantly. In terms of operations, our partner have been able to produce up to 100 products per month after occupying a new place. Before he moved to the new place, our partner was only able to produce 50 products per month. For finance, our partner use Value-Based Pricing strategies to determine the selling price of each product. In addition, we also managed to increase our partner's monthly income from Rp 2.375.000,- to Rp 4.257.300,-. Then, for the marketing department, our group had suggested our partner to uses social media like Instagram to market our products. Instagram is used to promote existing products, while more information about products and special orders can be done via WhatsApp. And for the human resources section, our partners managed to increase the number of employees from 2 employees to 5 employees

Pengembangan Usaha Lampu Hias Pipa Mg Craft Melalui Kegiatan Pengabdian Kepada Masyarakat Universitas Prasetiya Mulya

Community Development is a lecture activity held by Prasetiya Mulya University for semester 5 students. On this occasion our group obtained business partners in the Wangunjaya Village, Cugenang District. Who owns the business consists of decorative lights which have raw materials consisting of paralon pipes made of PVC (Polyvinyl Chloride). Starting from the operational aspects, financial, human resources to marketing. The target that our group have discussed is to expand the scope of this business, so thatthe number of people who know this product and its development can increase significantly. In terms of operations, our partner have been able to produce up to 100 products per month after occupying a new place. Before he moved to the new place, our partner was only able to produce 50 products per month. For finance, our partner use Value-Based Pricing strategies to determine the selling price of each product. In addition, we also managed to increase our partner's monthly income from Rp 2.375.000,-to Rp 4.257.300,-. Then, for the marketing department, our group had suggested our partner to uses social media like Instagram to market our products.Instagram is used to promote existing products, while more information about products and special orders can be done via WhatsApp. And for the human resources section, our partners managed to increase the number of employees from 2 employees to 5 employees.

Value-based cloud price modeling for segmented business to business market

Abstract Cloud price modeling is the major challenge facing many cloud computing practitioners and researchers in the field of cloud economics, which is also known as “Cloudonomics.” Previous attempts mainly focused on a uniform market and used existing price models to explain the issue of revenue maximization for cloud service providers (CSPs) from a cost or internal rationality perspective but paid less attention to the cloud market segmentation for cloud business customers from a surplus value or external rationality perspective. This study considers both aspects of the value proposition. Based on the assumptions of the customers’ utility values for different market segments, we establish a framework of value-based pricing strategy and demystify the process of modeling and optimizing cloud prices for CSP to maximize its profits. This framework is built upon the theory of value co-creation for both customers and CSPs to form a business partnership. We show how to create four cloud pricing models, namely: on-demand, bulk-selling, reserved, and bulk + reserved. We also demonstrate how to identify the optimal price point of each model to maximize CSP’s profit by genetic algorithm. We exhibit that reserved, bulk + reserved, on-demand, and bulk-selling can deliver a profit margin of 203%, 183%, 166%, and 157% for CSPs respectively. While the reserved model provides the highest profit margin, it does not necessarily mean that CSPs should adopt one model only. We provide a novel solution that allows CSPs to achieve the maximum profit by offering multiple pricing models simultaneously to various customers in the segmented market. We argue CSPs should capitalize on cloud pricing rather than price to gain more cloud market share and profit. Thus, we present state-of-the-art cloud pricing for segmented business to business cloud market.

Better profit formulas for new business models: capital goods industries in a fragmented market

Purpose Over the past years, traditional manufacturers of capital goods, such as Siemens, ABB and GE, have seen their business environments transform. As a response to these changes, firms began to change their business models from providing singularly developed, integrated one-off solutions to offering modular, mass-customizable systems, including increasingly sophisticated services. This paper aims to support such manufacturers in overcoming uncertainties in designing innovative profit formulas in this new approach. Design/methodology/approach This study is based on an 18-month research project at a multinational, multi-scope manufacturer in the capital goods industry. Findings To innovate profit formulas, this study recommends a three-step approach: first, categorize your customer requirements along new dimensions for each project; second, apply smart and novel combinations of competition- and value-based pricing and cost strategies within projects; and third, calculate your profits at the feature level instead of the aggregated project level. Based on this approach, managers can categorize projects through an introduced matrix tool and identify ways to improve profitability. Research limitations/implications Findings are applicable to the capital goods industry and to comparable sectors where vendors can tailor product features for each customer individually. Originality/value This study will help managers to overcome the challenge of rethinking ways of operating that are long established and, until now, very successful. It sets out a methodology – the profitability matrix – that managers can use to analyze the profitability of a specific customer offering and suggests ways to improve it based on a novel three-step approach for designing new profit formulas.

Impact of Precision Medicine on Drug Repositioning and Pricing: A Too Small to Thrive Crisis.

The pricing of targeted medicines continues to be a major area of contention in healthcare economics. This issue is further complicated by redefining the role of molecular testing in precision medicine. Currently, whilst pricing of clinical laboratory diagnostics is cost-based, drug pricing is value-based. The pricing for molecular testing is under pressure to change the traditional business model, for it has a critical subsidiary role in determining the final value of targeted medicines. The market size for drugs is reduced by molecular testing when patients with the same disease are stratified based on their genetics, it is critical to determine the value of this new enhanced drug specificity to realize its full pricing potential. However, these value-based pricing strategies require a careful understanding of changing market conditions, especially, in the context of stratified patient segments made possible by precision medicine. In this article, we discuss the various factors impacting pricing decisions, and consider evolving economic trends in precision medicine.

Dynamic Pricing Strategies for Perishable Product in a Competitive Multi-Agent Retailers Market

Due to the fierce competition in the marketplace for perishable products, retailers have to use pricing strategies to attract customers. Traditional pricing strategies adjust products’ prices according to retailers’ current situations (e.g. Cost-plus pricing strategy, Value-based pricing strategy and Inventory-sensitive pricing strategy). However, many retailers lack the perception for customer preferences and an understanding of the competitive environment. This paper explores a price Q-learning mechanism for perishable products that considers uncertain demand and customer preferences in a competitive multi-agent retailer market (a model-free environment). In the proposed simulation model, agents imitate the behavior of consumers and retailers. Four potential influencing factors (competition, customer preferences, uncertain demand, perishable characteristics) are constructed in the pricing decisions. All retailer agents adjust their products’ prices over a finite sales horizon to maximize expected revenues. A retailer agent adjusts its price according to the Q-learning mechanism, while others adapt traditional pricing strategies. Shortage is allowed while backlog is not. The simulation results show that the dynamic pricing strategy via the Q-learning mechanism can be used for pricing perishable products in a competitive environment, as it can produce more revenue for retailers. Further, the paper investigates how an optimal pricing strategy is influenced by customer preferences, customer demand, retailer pricing parameters and the learning parameters of Q-learning. Based on our results, we provide pricing implications for retailers pursuing higher revenues.

Value-based pricing meets twenty-first century procurement

Fierce global competition and the growth of low-cost competitors are causing suppliers in many business and industrial markets to differentiate themselves through value-based strategies. At the same time, procurement organizations in many businesses are assuming a more pivotal role in supplier management and buying decisions. Little research, however, has been carried out to consider how sellers’ value-based pricing is impacted by buyers’ procurement goals and strategies. It is the aim of this article to review and integrate the empirical literature on value-based pricing and modern procurement strategies and goals in order to construct a conceptual framework for pricing practitioners and questions for future research.

Price fairness and PWYW (pay what you want): a behavioral economics perspective

This study proposes a conceptual framework to clarify what leads to successful implementation of the pay what you want (PWYW) pricing mechanism. Psychological factors from the behavioral economics perspective are included in the framework based on the proposition that they play a role in determining how much a consumer will pay. PWYW refers to a participative pricing model in which a consumer can take full control over the price. The goals of this value-based pricing strategy are in line with the goals of revenue management—increasing the opportunity for greater revenues and higher customer satisfaction by understanding consumers’ perceived value. A meta-analysis of real-world examples identifies components, including price fairness perception that can lead people to pay something greater than zero under PWYW.

Pricing strategies and levels and their impact on corporate profitability

Price policy definition is one of the most important decisions in management as it affects corporate profitability and market competitiveness. Despite the importance that prices take in organizations, it appears that this element has not received proper attention by many academics and marketers since it represents, according to estimates, less than 2% of the papers on leading journals in the field. Thus, the aim of this study was to propose and test a theoretical model showing the impacts of pricing policy on corporate profitability. To this end, 150 companies in the metal-mechanic sector situated in the Northeast of Rio Grande do Sul State, Brazil were studied, integrating customer value-based pricing strategies, competition-based pricing strategies and cost-based pricing strategies with price levels (high and low) and performance with respect to profitability. The results indicate that the profitability of the surveyed companies is positively affected by value-based pricing strategy and high price levels while it is negatively affected by low price levels. Such findings indicate that pricing policies influence the profitability of organizations and therefore, a more strategic look at the pricing process may constitute one aspect that cannot be overlooked by managers.