Here' at Pricing Innovations, we’ve set out to reimagine the way we innovate, develop and monetize products that meet their revenue and profit goals. That’s why we created the Pricing Canvas ™. The Pricing Canvas ™ consists of ten sections each representing a structural component of your business, product, and market. Each section helps you to design your pricing and monetization plans using the principles of strategic, competitive, and value-base...

A key difference in dynamic pricing in the fitness industry from hotels and airlines is not only the much shorter booking window but also the time of consumption. In most hospitality and airline pricing software, the booking windows may range up to a year. In that regard, dynamic pricing in fitness industry could be closer to Uber’s surge pricing than hotel pricing. In Uber’s case, the booking of the service is near real time and the consumption of it...

You can never really catch up in digital Remember how long it took most organizations to become a digital enterprise? It took more than two decades to operationalize the added layers of digitization in an integrated manner. Riding this wave of digital transformation is not really something that you ever catch up. The later you develop new digital experiences, the later you will monetize your data.

Today, we go back to our original question? How will you create new digital services, experiences, and transformations that customers are willing to pay for, increasingly more? The short answer is this: you simply can't agile your way into monetization.

Translating the benefit-value continuum into the product features and functionality is easier said than done. Most start-ups over-engineer solutions that make their own product vision “complete.” But savvy product management requires omitting the features that drive the costs more than adding value for paying customers. Bringing the pricing process as early as possible into the development cycle will help determine what to build and what to omit accor...

Global budgeting is a new monetization model which aims to replace the “fee for service” model that hospitals charge for each visit, procedure etc. This new payment model forces hospitals to rethink the care that they provide and the ways in which they can keep their patients healthier. Hospitals are thus incentivized to reduce preventable illnesses while being able to make a margin by keeping their community healthy rather than keeping their beds fil...

Make sure to structure your pricing plan to maximize your retention once you begin applying full price. Determine how you will align the value delivered with different plans and how you will mobilize buyers from lower priced tiers to higher priced tiers. Find the balance between too much value and not enough value in your free or trial plans. Test different sets of fences, caps, and triggers to influence the buying behavior, during your beta period. F...

Perhaps, the biggest lesson of all, for tech marketers out there, is that the common fear of taking your products to market with a high or the highest price tag is not a justified one. You can price your products at category defining levels provided that you 1. Focus away from the price itself, and instead 2. Focus on the benefits of your product – especially if your product was built to 3. Satisfy the needs of your most sophisticated users, whether...

The power of pricing comes from the differentiated product attributes that are of value over the current customer experience - a concept of what pricing scholars call the “exchange value”. This is easier said than done because it requires rigorous competitive research and quantitative analysis. Take most B2B software and software-as-a-service - SaaS. In SaaS, products are less transparent and a feature by feature comparison is difficult to make. In mo...

Most start-ups over-engineer their solutions and make their own product vision “complete.” But savvy product management requires omitting the features that drive the costs more than adding value for paying customers. Bringing the pricing process as early as possible into the development cycle will help determine what to build and what to omit according to what you can indeed sell first to early-adopters and later to paying customers.

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