Pricing is not about "prices."

Businesses generate their revenue by executing the following three activities:


  1. Value creation: designing and developing the offerings for which the customers will pay to acquire

  2. Value communication: informing the market and the prospective buyers/users about your offerings

  3. Value realization: completing purchase transactions, delivery, deployment

Pricing defines how value exchanges hands between the business and its buyers, therefore, it's much more than just a point.

A good pricing plan has three components: 

  1. The pricing structure

  2. The pricing model

  3. The pricing window


We'll dive into each one of these components next week! 

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