Complex sentence: Value based pricing, or Value optimized pricing is a business strategy that sets selling prices on the perceived value to the customer, rather than on the actual cost of the product, the market price, competitors prices, or the historical price.
Split into simpler sentences: Value based pricing, or Value optimized pricing is a business strategy. IT sets selling prices on the perceived value to the customer, rather than on the actual cost of the product, the market price, competitors prices, or the historical price.