The root of all innovation evil is the failure to put the customer’s willingness to pay [WTP] for a new product at the very core of product design. Most companies postpone pricing decisions until after the product is developed. They embark on a long, costly journey of hoping they’ll make money rather than knowing they will. You can ensure your product not only stays alive, … [ Read more ]
Content: Quotation | Author: Madhavan Ramanujam | Source: First Round Review | Subjects: Customer Related, Innovation, Marketing / Sales, Pricing
If pricing is adjusted on a regular basis, it trains your customers to understand that the value is going to be changing as the product is improving. The worst thing you can do is add so much value over the course of three to five years — even 12 months — and then all of a sudden want a big bump from your customers who … [ Read more ]
Content: Quotation | Author: Patrick Campbell | Source: First Round Review | Subject: Pricing
Early on, many startups don’t want to show prices — and that’s okay. Most don’t really know what they should charge, so they prefer to get intel by asking inbound customers some pricing questions. However, when you reach a point where you want a touchless sale, then you need to show your pricing. If it’s not a clear number, such as in Wistia’s case, give … [ Read more ]
Content: Quotation | Author: Patrick Campbell | Source: First Round Review | Subjects: Entrepreneurship, Marketing / Sales, Pricing
Madhavan Ramanujam is to monetization strategy what Bob Marley is to reggae music. He’s managed over 125 projects for companies ranging from hot startups to the Fortune 500. Drawing from his talk at First Round’s CEO Summit, Madhavan Ramanujam explains why pricing is so paramount from the get-go and the four ways companies often trip up when trying to monetize. He also shares the three … [ Read more ]
Content: Article | Author: Madhavan Ramanujam | Source: First Round Review | Subject: Pricing
Price Intelligently Co-founder and CEO Patrick Campbell has seen startups and multinationals alike labor to perfect products only to casually raise their finger to the wind when it comes to determining pricing. In this exclusive interview, Campbell deconstructs and walks through the elements of a pricing strategy to enable startups to more effectively acquire customers. The foundational work behind pricing is to create, test and … [ Read more ]
Content: Article | Author: Patrick Campbell | Source: First Round Review | Subject: Pricing
Figuring out the right pricing for your startup is a challenging, yet crucial, part of building a successful company. The way you price your product can make or break your startup. So, it’s important to understand the pricing landscape of your market and how your company fits into it to get your startup’s pricing right.
Dreamit recently hosted an educational panel on startup pricing for the … [ Read more ]
Content: Article | Source: Medium | Subjects: Entrepreneurship, Pricing
How can you optimize the price of a product or service? Julián Villanueva, José Antonio Segarra and Iciar Ferrer outline the variables to keep in mind and explain how to tailor your pricing policy. For starters, remember that most buying decisions are far from rational, as they are influenced by certain psychological factors.
Content: Article | Authors: Iciar Ferrer, José Antonio Segarra, Julián Villanueva | Source: IESE Insight | Subject: Pricing
Changes in technology and a greater acceptance of dynamic pricing among consumers are prompting more industries to consider deploying this type of pricing mechanism, even though the concept has been around for more than 30 years. This article highlights four types of dynamic pricing and three criteria to consider if using it.
Content: Article | Source: Knowledge@Wharton | Subject: Pricing
Is it worthwhile for retailers to experiment with “pay what you want” pricing? Shelle Santana unmasks the surprising logic behind how much customers will pay, and when. One finding: sellers can dramatically change what some buyers are willing to pay.
Content: Article | Author: Michael Blanding | Source: Harvard Business School (HBS) Working Knowledge | Subject: Pricing
Setting the right price for your product or service is hard. In fact, determining price is one of the toughest things a marketer has to do, in large part because it has such a big impact on the company’s bottom line. One of the critical elements of pricing is understanding what economists call price elasticity. To better understand this concept and how it impacts marketing, … [ Read more ]
Content: Article | Authors: Amy Gallo, Jill Avery | Source: Harvard Business Review | Subject: Pricing
Doesn’t every business want to maximize its profits? Pricing textbooks certainly all assume they do, or at least that they want to achieve a certain profit level under given constraints. But in truth businesses rarely focus on only profitability; most strive to satisfy various stakeholders and meet the goals of balanced scorecards. And even when a company is focused tightly on financial performance, there are … [ Read more ]
Content: Article | Author: Stefan Michel | Source: Harvard Business Review | Subjects: Finance, Management, Pricing
An important part of an optimized website is your pricing page. So how can you best structure it? How can you present the information in the most effective way to help your site visitors decide to start using your product or service? Here are seven rules for designing your pricing page for optimal conversion.
Content: Article | Author: Dimitar Stojanov | Source: MarketingProfs | Subjects: Marketing / Sales, Pricing
Smartphones, tablets, even desktops have forced marketers to move on from age-old pricing models. They have had to dig deeper into buyers’ thought process to understand what persuades buyers. This article will explore some creative ways of pricing products for the digital age, backed by some sound research and practical applications.
Editor’s Note: find part 2 at http://www.marketingprofs.com/articles/2015/27822/smart-pricing-strategies-for-generating-higher-conversions-part-2-of-2
Content: Article | Author: Rohan Ayyar | Source: MarketingProfs | Subject: Pricing
Harnessing the flood of data available from customer interactions allows companies to price appropriately—and reap the rewards.
Content: Article | Authors: Dieter Kiewell, Georg Winkler, Walter Baker | Source: McKinsey Quarterly | Subjects: IT / Technology / E-Business, Pricing
Using price analytics could help companies in many industries do a better job of understanding the profitability of specific products and services. One cornerstone is ensuring the transparency of all associated costs. Price analytics also addresses areas such as organizational structure, business processes, customer segments and product characteristics.
Content: Article | Authors: David A. J. Axson, Kurt Rosander | Source: Accenture | Subjects: Finance, Management, Pricing
Diverse offerings make it tougher than ever to associate prices with a product’s or service’s underlying costs. Developing pricing arrangements for specific customers or customer groups also is increasingly difficult. One possible solution is a fully allocated price and cost waterfall.
Content: Article | Authors: Anthony Milani, Hyun Suk Oh, Ray Florio, Tiago L. Salvador | Source: Accenture | Subject: Pricing
If you’re not exactly sure which pricing strategy will work for your business, these 6 steps can help you successfully set your company’s prices.
Content: Article | Author: Dileep Rao | Source: OPEN Forum (American Express) | Subject: Pricing
Conventional management wisdom suggests that price should reflect value. But what is the value that prices should reflect? And just whose perception of value should determine price? As these questions and the answers to them suggest, pricing is no longer only an economic challenge. As this author suggests, pricing today is also a marketing challenge, and in this article he describes how managers should deal … [ Read more ]
Content: Article | Author: Tim J. Smith | Source: Ivey Business Journal | Subject: Pricing
Business executives involved in mergers or acquisitions face a full plate of prickly issues, from early due diligence to negotiating deal terms to organizational integration, including who ends up in the C-suite. However, one thing they typically don’t pay enough attention to is pricing strategy.
Content: Article | Authors: Jessica Fleming Kosmowski, Patricio Simpson | Source: Business Finance Magazine | Subjects: Mergers & Acquisitions, Pricing