FAQs

 

What Do You Actually Do?

We’re a product consultancy focusing on innovations in pricing for technology products, platforms, and services. We go beyond making monetization recommendations, and inform all aspects of your product, offer, pricing, and cost structures as well as your go-to-market plan. We offer assessments, coaching, and innovations for getting your pricing right.

 

What's Included in the Pricing Canvas™ Workshop?

The Pricing Canvas ™ Workshop has three distinct phases. We first submit a detailed data request and conduct discovery interviews with your team. Then, we work together through a half or full day workshop to draft a Pricing Canvas™ that is specific to your pricing opportunity. Finally, we re-engage for another session, a week or two later, and review the pricing plan that your team put together based on the workshop.

 

What's a Rapid Pricing Assessment™?

Rapid Pricing Assessment® is an opportunity analysis and pricing plan to quantify your optimum monetization opportunity. We work rigorously with your team and create a value model of your offerings using the principles of the Pricing Canvas™. Then, we determine a high-level pricing and monetization strategy for you to validate, test, and deploy.

 

What Can Pricing Do for Us?

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, buyer lifetime value, and buyer retention are all driven by your pricing strategy, structure, and model.

 

What's Your Pricing Process Like?

First, we discover the right pricing structure, pricing model and pricing window specific to your space and product lifecycle. We then use that learning to configure and/or reconfigure your product and offer structures. Next, we help you to optimize your cost structure informed by your product, offer, and pricing structures. Finally, we support you in aligning your new go-to-market plan with your product strategy and growth goals.

 

What Does a Good Pricing Strategy Look Like?

Your pricing strategy aligns your product, offer, and pricing structures with your overall growth strategy. Getting pricing strategy right means identifying the pricing structure, pricing model, and pricing window, that drives acquisition, monetization, and profit growth - all at once.

 

What's in a Pricing Structure?

Your pricing structure is key to aligning your prices with each of your customer segments in a specific purchase context. A good pricing structure is one that maximizes the revenue that you can generate from each of your different types of customers. This is an area where many product owners and marketers experience great difficulty, especially in fencing their new offering in relation to their current offerings.

 

How Do You Determine Willingness-to-Pay?

We have the following primary data collection options are available and included in most of our plans:

  • Pricing research design and survey(s)

  • Customer and prospect interviews

  • Design of experiments for price testing and validation

  • Competitive market mapping

  • Scenario testing

  • Full market simulations

  • Other primary research methods

What Is Value-Based Pricing?

The goal of value pricing or value-based pricing is to align your pricing structure with the value that is received by each of the different types of customers. We partner closely with your team(s) to determine the prices that best signal the differentiated value of your offering over the value offered by your competition.

 

What's a Value Stack?

​A value stack is a segmentation methodology which is used in value-based pricing. You can construct the value stack of each buyer/user type by first identifying the attributes that drive their willingness-to-pay and then quantifying the value of the benefits that they receive from those attributes. Finally, you can stack up each of these benefits and construct a value-based segmentation of different buyer/user types: the value stacks.
 

What Is a Profit-Adoption Model?

Our Profit-Adoption Model is a financial and scenario-based model which is designed to identify the adoption levels that will drive the highest levels of long-term profitability. We scenario-test alternative price levels and determine the price points that will communicate your highest competitive value.

 

What's Your Approach to Competitive Analysis?

Our competitive analysis helps to identify the relevant reference points to determine the value of your differentiated offerings. Whether your offering is new-to-the-world or next generation, it's important to build your value proposition in relation to the value of the competing offers as well as substitute solutions.

 

What's Your Approach to Monetization Strategy?

We scenario-test alternative models and levels of monetization as well as the product, service, and solution blocks, and determine the model that is most fit for executing your go-to-market strategy, profitably. We don't stop at monetization; we also determine the optimum mobilization strategy to move your customers from lower-priced tiers into higher-priced tiers, in and increase the customer lifetime value.time,

© 2018 by Pricing Innovations LLC. All Rights Reserved 

+1 (612) 351 - 2503

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