The US FTC will probably abandon the principle of Net Neutrality. This will lead to new pricing options for ISPs, application providers and content providers. It is time to start developing scenarios for the impact this will have.
It is a truism among pricing experts that you should not base your price on your costs. Your costs are your problem, not your customer's. It is up to you to manage costs relative to the value you provide and the customer's willingness to pay. This sounds good in theory, but anyone who has run a business knows that costs matter. They matter a lot. Costs cannot be ignored when one is thinking about pricing strategy.
Many of Ibbaka's clients have begun to work on their 2018 strategic plans. We encourage people to put pricing front and center of these plans, and to have some strategic goals around their pricing. We introduced this theme in Make pricing your strategic edge in 2018. Let's go in a bit deeper, and look at one thing you should be considering for 2018. Pricing Power.
Who should own pricing decisions? There are as many opinions on this as there are pricing experts. For good reason. The answer to this question depends on the company's goals and organizational structure, and on just where the product is in the lifecycle. Candidates for pricing governance leadership are the CFO, the head of sales or chief revenue officer, product marketing and product management. But for early-stage innovation, in the build up to launch and for the first few years on the market, I believe the answer is clear. The product manager should be responsible for pricing.