Services unfold over time, and when you design a service and its pricing you need to make sure to consider how emotional and economic value unfold over time. Find some way to make sure buyers get at least some economic and emotional value early on.

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.

How can a maturity model help you with your pricing strategy? It all comes back to what drives value. Different stages of a maturity model drive value in different ways and therefore, influence how they should be priced

This series is focused on the challenges of pricing a portfolio of offers. In the first two posts, we looked at how pricing changes over time and how to set goals for a portfolio of offers. Now, we move on to the most difficult part of pricing a solution portfolio. Working out how to make the interactions between different offers work in your favour. We also look at some of the pitfalls.

Craig Zawada, a pricing expert with a rich background in consulting and technology, shares insights from his journey in shaping pricing strategies. From pioneering concepts in pricing at McKinsey to driving innovation at PROS, Zawada discusses the evolving role of pricing in the digital and AI era.

Pricing has important transition points across the technology adoption cycle. How you think about value and use it to shape your pricing strategy changes as your buyer’s motivation changes. It is critical that leadership, investors, product and services managers and marketing understand these transitions and price products or services appropriately for them

For a single offer pricing is mostly a question of alignment. In some of the companies we work with, there is a lack of alignment on pricing goals between product, sales, marketing and finance. When one moves to portfolio management, pricing things gets more complex. Part 2 of our series focuses on setting pricing goals across the portfolio

Pricing one offer can be a challenge, but the challenge has a lot more dimensions when you need to price a portfolio of solutions. This is the situation that many companies find themselves in as the result of a series of acquisitions, organic expansion, and the move away from products to services and then to solutions. This series explores how to price when faced with these challenges.

Pricing touches strategy on many different levels, from getting alignment on winning aspirations all the way down to how systems are used and configuration is done. It is one of those things that integrates a company. This post explores pricing in the context of organizational strategic choices

When designing pricing, one must consider how value is created and differentiated. Does a service differentiate on experience or outcome? Here is a simple process for integrating experience and outcomes into value-based pricing.

Pricing is an integral part of service design. There are several reasons for this. Of course one cannot analyze the profitability of a service without knowing how it is priced. Beyond this, price is part of how we experience a service, and pricing will shape how and when a service is used.

Willingness to pay (WTP) is one of the most frequently abused concepts in pricing. Many people try to use it as a proxy for value. It is not. Other companies claim they can estimate willingness to pay through surveys. This is too simplistic. Why?

Willingness to pay is determined by framing and by the value delivered to the customer relative to the alternative. To measure willingness to pay without taking these into account is wasting an opportunity to really understand your customers and position the value you are providing.

Pricing is a critical part of business success and it cannot be left to chance. What role should the CEO play in pricing? It comes down to setting strategy, ensuring alignment, monitoring execution, and taking leadership on pricing ethics and fairness.

Revenue recognition seems to be a dull and technical topic, only of interest to accountants and CFOs. This is a dangerous way to think. Revenue recognition principles can shape the design of your services and constrains how you price.

Our recent research on how people price innovations found different pricing methods for sustaining versus disruptive innovators. Sustaining innovators tend to use value-based pricing. Disruptive innovators are more likely to price relative to the market alternative. We explore why this might be using the Clayton Christensen model of disruptive innovation.

What is value management? (And why you should care). A document from back in November 2012 that sets out the basic approach to value management, and how it integrates innovation, marketing, sales and of course pricing. A new version of this document is in development.

Predicting the outcomes of pricing changes is difficult. Many different forces interact. Ibbaka combines market segmentation with causal diagrams and Monte Carlo models to understand the range of possible outcomes of a pricing change and how to manage the risks of the change.

What should should you be doing in 2019 to build and activate pricing as a driver of business growth? A combination of new capabilities, market research and decisive action is needed. The outcome can be greatly improved performance.

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.

Customer lifetime value (LTV or CLV) is a critical metric for many companies in the subscription economy. But before your LTV comes V2C (Value to Customer). Understanding how you will create value to your customers over time should come before estimates of LTV and LTV and V2C need to be kept aligned.