The anatomy of a good pricing plan
Pricing is one of the most powerful levers to transform a good product into a good business. A key set of metrics such as profitability, average revenue per buyer, buyer acquisition, customer lifetime value and retention are all driven by your pricing. The key is to identify the right drivers specific to your space. The Pricing Canvas ™ is the ideal tool for that because you can focus on any of the ten sections individually, and find ways to fuel your specific drivers for adoption, monetization, and growth.
Getting pricing right means identifying the pricing structure, pricing model, and pricing window, that drives acquisition, monetization, and mobilization - all at once. That is what it takes to make it in the market. The Pricing Canvas ™ is a great tool to figure out how to achieve that kind of alignment. The Pricing Canvas ™ not only helps you develop the products that people will actually buy but also align your revenue model with the true dynamics of your buyers, users, and market.