Image by Alvaro Reyes

PRICING

 

Value-based pricing goes hand and hand with SaaS-based offerings. It allows your organization to:

Drive Adoption & Revenue

Value-based Pricing that fits buyers’ needs now and allows for growth in the future

  • Pricing that establishes associated value to differentiated capabilities, increasing margins and defending against price erosion

  • Product packaging that positions your offerings to different buying segments and their goals

  • Product packaging that increases retention through heightened value / price awareness 

Reduce Costs

  • Streamlined product catalog that reduces back-office mgt. costs

  • Standardize offerings that enable simplified and consistent deployment

  • Product packaging that ensures features with higher support cost are aligned to higher priced offerings

  • Reduces costs for:

    • Hardware

    • Data center maintenance

    • Unused capacity

Optimize Teams

  • Standardize support offerings tied to packages

  • Build the best products by incentivizing PMs to focus on adding capabilities that customers value

  • Eliminate development support for features that don’t align with customer needs

  • Transform IT staff from cost center to building value into solutions

Pricing and Packaging

Our Method

Our six-step process provides a comprehensive approach to designing pricing for our clients:

  1. Establish Pricing Goals & Identify Challenges: Establish cross-functional alignment on the goals of the new pricing, ensuring inclusion in the process and high internal adoption of the resulting pricing strategy.
     

  2. Understand Your Buyer and Buyer Segments: Value-based Pricing should be designed to align to your buyer / decision makers’ success criteria. Packages should be designed to enable positioning to each of the segments of your buying population.
     

  3. Product Capabilities Mapped to Value-based Packages: Create feature-based packaged that align buying segments.  
     

  4. Setting Target Price Points & Pricing Metric: Perform historical deal analysis and consider competitive pricing to establish target price point per package. Ensure the 'pricing metric' used for the pricing aligns to how the buyer associates value to your offering. 
     

  5. Gross Margin Analysis: Model your COGS into a deal level margin tool so that you can check your target pricing for strong gross margins.
     

  6. Test Pricing In Market: Test your pricing before you roll it out by performing market surveys to identify prospective client's willingness to pay (Price Sensitivity and Elasticity).

Pricing and packaging can often entail passionate perspectives by cross-functional teams. These efforts are large projects that benefit from pricing consulting experts that can lead cross-functional alignment and perform extensive data analysis that otherwise would take away employees from their primary responsibilities.