Pricing design work often needs to include an unbundling phase. The current offer gets broken down into its key parts so that the contribution of each aspect to value can be understood. These function to value mappings are then connected to a value-based market segmentation in order to repackage offers so that they can be priced.
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.
Early stage innovators often gravitate to horizontal solutions. This can drag down their pricing power as they end up pricing to the lowest common denominator. Build value and pricing power by delivering a business solution to a targeted segment (a real segment gets value in the same way and buys in the same way).
Ibbaka has been selected for the 2019 Ready to Rocket list. Curated by Rocket Builders, the Ready to Rocket list identifies the companies in British Columbia expected to have the highest growth and most impact on the innovation economy. Ibbaka looks forward to contributing to the success of the other companies on the list.
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.
Primary research for B2B pricing requires a focus on how the offer creates value for different types of prospective customer and how the customers buy. It is important to combine surveys with interviews and to avoid confirmation bias. Direct questions about willingness to pay (WTP) give misleading results.