Book Chapter
Servitization, the shift from product-centric to service-centric business models, redefines the core focus of manufacturing firms, positioning services as key growth drivers. This transformation introduces complexities in pricing strategies due to the diversified service portfolio.
This entry explores distinct pricing approaches across four service categories: Product Lifecycle Services (PLS), Process Support Services (PSS), Asset Productivity Services (APS), and Customer Solutions (CS). Each category demands tailored pricing strategies. While PLS and PSS rely on input-based volume and cost-plus principles, APS and CS emphasize outcome-based and gain-sharing models. Challenges arise in pricing CS, particularly in aligning customer/vendor interests and establishing accurate value-based pricing.
The study highlights the evolving nature of servitization and the imperative need for strategic, value-driven pricing models in service-oriented markets.