Take control of your pricing with our upcoming Master Class with PeakSpan Capital. Our highly anticipated event is on “Pricing Diagnostics and Rapid Response” and will equip you with a practical action plan that empowers you to swiftly diagnose and take control of your pricing strategy.

Historically most SaaS companies have focussed on revenue and not been concerned with margins and costs. This was the result of a revenue growth focus and relatively high margins. With the paradigm shift in SaaS, this has changed, and costs are being factored into models and tested at different scales.

In a tough stretch for the tech sector AI, and especially content generation AI, has been getting a lot of love. This is only sustainable if these AIs are creating value and that value can be priced. How can we do this?

In B2B SaaS, pricing and packaging are developed together. The package architecture determines the pricing model design. Two common approaches to packaging are (i) platform with extensions and (ii) independent modules. Both evolve through application of the severn modular operators. Pricing needs to evolve with the packaging.

In the summer of 2022, long years of work on AI content generation exploded into the mainstream. In 2023, billions of images will likely be produced by systems like Dall-E and Stable Diffusion. How will AI content generation deliver value? Is this category creation or disruptive innovation? How will these systems and the images they generate be priced? The 3rd part in Ibbaka’s series on Pricing and Innovation.

As companies innovate and adopt new growth models, they need to redesign their pricing models. Designing a pricing model is a difficult challenge. Many different perspectives and objectives need to be integrated. But once the design is done, the hard work starts. Ibbaka asked the Professional Pricing Society community about the biggest challenges.

The pricing metric is the unit of consumption for which a buyer pays for your offer. It should track the value metric. The unit of consumption by which a user gets value. Changing the pricing metric is one of the most important things you can do to transform your business. When should you change your pricing metric? How do you go about doing this?

How would you price leadership training? Most people price per person trained. Is that the right approach in all cases? Here we explore some different ways to design pricing for leadership training. In pricing, the first question is how is value delivered, the second question is what to price.

Three of the most important pricing questions are ‘What to price?’ ‘What to optimize?’ ‘How to optimize?’ Pricing experts have gravitated to how to optimize, but it is important to answer the other two questions first. Begin with what to price.

Customer value management (CVM) is the most important business discipline. It helps companies across the value cycle of create, communicate, deliver, document and capture value. The result is that companies can track V2C (Value to Customer) and make sure that V2C and LTV (Lifetime Value of a Customer) are aligned. This requires methods from value-based pricing.

Many organizations struggle to adjust prices for local markets. Price setting in these markets is often arbitrary but it does not have to be. One can adjust pricing for international markets in a way that is fair, consistent and transparent. The Service Design Network provides a recent example.

Many companies provide learning resources to support the adoption of their technologies. Visionary companies and those engaged in category creation go beyond this to help people develop domain level expertise. Large, mature companies often support certificates and credentials. What does value-based pricing have to say about pricing strategies for learning resources?

In the enterprise cloud world, integrations are central to value creation and differentiation. How does one go about pricing these integrations? How should vendors see the emergence of platforms that can integrate many different applications. Value-based pricing shows us how to proceed.