Are you applying best practices in your pricing?

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Self-Assessment

Willingness to Pay

Pricing across maturity models

Pricing across maturity models

Maturity models are a powerful way to organize progression through towards excellence in a discipline. One of the earliest maturity models was the Capability Maturity Model (now the CMMI for Capability Maturity Model Integration). In recent years’ maturity models have become a useful way to organize upsell strategies and to frame pricing models and pricing strategy.

Are you pricing the experience or the outcome?

Are you pricing the experience or the outcome?

There is a tension in service design between outcomes and experience. Given its roots in the design world, service design is often focussed on the experience. But in some cases the outcome is all that matters. In others, the experience is the outcome. This can complicate the pricing of services and new models are needed.

Changing your pricing metric can change willingness to pay (WTP)

Changing your pricing metric can change willingness to pay (WTP)

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.

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