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This Core Curriculum Reading introduces the fundamentals of getting price right. First, it introduces value pricing, which requires a detailed understanding of the true economic value (TEV) that a firm's product creates for a specific customer. Value pricing also requires a decision to divide that value between the firm (providing the firm its incentive to sell) and the customer (providing the customer with an incentive to buy). After covering the key elements of the value-pricing approach, the Reading explains the concepts of price customization, consumer sensitivity to price, and the impact of price on the organization's profitability. Readers also learn how both quantitative research and managerial judgment are used to make optimal pricing decisions. For classroom use in higher education. The reading includes three Interactive Illustrations: 'The Value-Pricing Thermometer', which explores how the setting of a product's price affects the allocation of value between a customer and the firm; 'Breakeven Analysis', which helps readers understand the output required to fully cover the fixed and variable costs in various scenarios, and the impact on company revenues and profits; and 'Marginal Math', which explains marginal math and the interplay among price, margin, unit sales, and price elasticity in low-margin and high-margin settings.