Willingness to pay is very sensitive to framing effects. One of the most important framing effects is the pricing metric. B2B SaaS companies can realize orders of magnitude changes in willingness to pay by changing their pricing metric. Pricing metrics can also be a powerful way to differentiate.
At Ibbaka, we begin our pricing work by understanding the value of your product or service from the perspective of your customer. Our approach is to research, validate and quantify the economic (monetary) and emotional value your offer creates for the market with customers and non-customers. By understanding your differentiation relative to the customer’s next best competitive alternative, we can design a pricing model built that communicates and even amplifies your differentiation.