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.
Join the Ibbaka team on Thursday March 21 for two pricing case studies. One looks at Economic Value Estimation in precision agriculture. The other looks at vectors of innovation and pricing in media (the subject being the iconic British financial newspaper The Financial Times). This is part of the Value Innovation and Pricing Vancouver series of MeetUps.
User-based pricing has gotten a lot of bad press recently. It is generally seen as a lazy pricing metric, used by companies that have not thought deeply about their value metric and how to connect the pricing to value. But there are many cases when user-based pricing is the best metric and should be used.