AI is changing the nature of the pricing game. But pricing is a special kind of game with unique characteristics that make designing pricing AIs a challenge. In this article, the author explores the elements and contributing factors of the pricing game and explains the critical capabilities pricing AIs need to have in order to be successful.
Price elasticity models provide valuable insights into consumer behavior and market dynamics. By quantifying the responsiveness of demand to price changes, businesses can develop more effective pricing strategies, optimize promotional efforts, and drive revenue growth with dynamic pricing. Understanding and applying price elasticity concepts empower businesses to make informed pricing decisions in an ever-changing marketplace, as the author explains.
In this article, we explore how innovative pricing models are becoming the new source of competitive advantage. The pay per use / wash / mile pricing model is used as an example to deep dive the topic. Several cases have been taken from the book “The Pricing Model Revolution” to present how companies of different industries and regions successfully applied the model to reach a competitive advantage.
Most SaaS companies price products. This seems like the obvious thing to do since they do, in fact, sell products. However, is this always the best approach? In this article, the author highlights the benefits of alternative pricing approaches, such as pricing “use cases” and “value paths,” basing pricing strategy more on what “leads a buyer to buy or a user to use.” Although this article focuses on SaaS companies, these considerations apply to pricers in multiple markets and organizational structures.
In this article, the authors present a unified pricing theory, manifested in a tool called the Strategic Pricing Hexagon, that brings together all the disparate pricing ideas, and the drivers and forces behind them, into one master structure. This article shows how the Strategic Pricing Hexagon allows leaders to look beyond the numbers and develop a pricing strategy that can change the entire trajectory of their business and their market.
In today’s rapidly changing economy, the most successful firms are those that have as their number one priority a total comprehension of the value perceived by their customers combined with innovative approaches to monetization, as the author explains.
The purpose of this paper is to briefly present the two commonly-used business model canvases and to introduce the Pricing Model Innovation Canvas that can be used by pricing, innovation, and marketing teams to better frame their pricing model(s) and to make better pricing decisions.
Subway has long been known for its “five-dollar footlong” promotions, but are these promotions and the volume they provide actually profitable for the company and its network of franchises? In this article, the author examines how discounting and pricing promotions can have catastrophic effects when not well-planned or executed.
In this article, the author examines the continued use of cash for payments, despite the global availability of electronic payments, and some of the psychological explanations explaining certain customers’ continued insistence on using cash is certain situations. The author also examines how the use of cash versus electronic payment affects consumers’ perceptions and behaviors in certain situations.
Companies that are quick to adopt new pricing models, or innovate new pricing models themselves, often see rapid growth and development. Unfortunately for the manufacturing industry, pricing innovation has been largely absent in the recent past. In this article, the author explores some growing trends in technology that will help pricers in the manufacturing industry adopt new and competitive pricing tactics.