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Pricing strategy

What shapes willingness to pay (WTP)?

What shapes willingness to pay (WTP)?

Willingness to pay (WTP) is one of the most abused terms in pricing work. Lazy consultants use it as a proxy for value. It is not. Market researchers think of it as something to be measured. Pricing strategists look for ways to shape WTP through marketing segmentation, value communication and a pricing model that connects price to value.

Managing discounts in B2B SaaS

Managing discounts in B2B SaaS

Discounting can be a touchy subject. Sales people often claim that discounts are required to make the sale. Pricing is philosophically opposed to discounts as they undermine profitability and signal lack of pricing power. Marketing worries about how discounts will impact value perception but at the same time desire the increased attention that a well-managed discount campaign can generate. Ouch. How do you manage all of these different imperatives?

Introducing the LinkedIn Group on Pricing the Internet of Things

Introducing the LinkedIn Group on Pricing the Internet of Things

We are opening a LinkedIn Group on Pricing the Internet of Things. Why do this? There are many excellent LinkedIn groups on pricing. The Professional Pricing Society has a particularly good one and we are active on it. There is also a good group Internet of Things Strategy and Innovation. So why another LinkedIn Group?

The SaaS Freemium Trap - Photobucket vs Meetup

The SaaS Freemium Trap - Photobucket vs Meetup

The freemium revenue model is the go-to-market strategy for many web-based software solutions. Unfortunately, it can turn into a costly trap for the service provider. We saw this happen in June of this year with the Photobucket freemium to fee-based service migration debacle. Let's delve into what went wrong with Photobucket's fee introduction and contrast this with the lessons to be learned from Meetup's successful migration to a paid subscription model.

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