Usage-based pricing, or quantity-based pricing, is the next iteration of the subscription economy, especially for B2B software companies. If you’re considering how your company would fare with usage-based pricing, there’s no time like the present, but here are a few things to think about before you jump in.
Topics: Pricing with Confidence, Uncovering your Value, Pricing Strategy
At Holden Advisors, we believe a value-based approach is the best way to set a fair price for your products and services. But data-driven pricing, when done right, will lift your profit margins in the short term. Here’s the story of how hunting down hidden data turned profits around for one company.
Topics: Pricing with Confidence, Uncovering your Value, Pricing Strategy
Is it possible to double your price and not lose any customers? Yep.
We’ve worked with many companies that are going through commercial transformations and, while I’m glad to see more and more companies adopting transformational efforts, the fact remains that many are doomed to fail.
Topics: Uncovering your Value, customer experience, Commercial Transformation
Hear Pete Morelli talk about what we can learn from the price increase that Netflix rolled out last week.
Topics: Negotiating with Backbone, Pricing with Confidence, Uncovering your Value
I was speaking with the VP of Pricing Transformation for a Fortune 500 company recently and, as disciples of value-based pricing, we debated the subtleties of modern-day pricing theory. We agreed that a shift to value-based pricing within an organization should achieve the following:
Topics: Uncovering your Value
Customers buy your products for a reason—namely, the impact your products have on their business results. If they could get the same results without buying your solution, believe me, they would. They would gladly refocus their time and money on running their business.
Topics: Uncovering your Value
I recently spoke with a major supplier to semiconductor manufacturers. The semiconductor industry has a handful of global players owning 80% of the market. Predictably, the supplier’s business model is heavily reliant on a few large customers. Because of this reliance, the supplier’s marketing team is well-schooled in measuring value delivered to customers. They knew critical semiconductor KPIs like cost of ownership, yield, performance, and risk. Their value analyses align with improving performance in these key areas. The value toolset is impressive – I had never seen such models and spreadsheets that calculated value so completely.
Topics: Newsletter, Uncovering your Value
Nothing beats the smell of a real Christmas tree. Every year on the weekend following Thanksgiving, my wife and I head to the local pop-up seller where tree farmers from up north display their wares of Balsam, Frasers, and Douglas Firs. We evaluate each tree based on size, ability to hold ornaments, the shape, propensity for needle drop, etc. and select a full tree carefully measured to be one inch lower than our ceiling.
Topics: Newsletter, Uncovering your Value
