Differential Value - Sales Glossary - Upnify
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Differential Value


Differential value is the change in customer utility offered by a product compared to the alternative. If the new product is superior to its comparable alternatives, the differential value is positive. If the new product is inferior to its comparable alternatives, the differential value is negative.

The economic exchange value of a product is the price of the nearest comparable alternative adjusted by the differential value of the product.

Exchange Value = Price of Comparable Alternative + Differential Value.

It is the price that customers would pay for their nearest comparable offering plus the value of the increased (or decreased) benefits of the new improved (or downgraded) product.