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.
The question of the right pricing model is a topic of heated and controversial debate in the pricing community. There is no simple answer to this question - but here is what you can look out for.
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.
Designing a pricing model is a difficult challenge. Competing pricing goals need to be prioritized and aligned. A great deal of data needs to be collected, organized, and analyzed. Creative ways to connect value and price must be developed. But designing the pricing model is only the beginning of the journey. What comes next is critical. In this article, the author outlines the necessary steps and common pitfalls involved with designing and implementing a new pricing model, as well as best practices for successful adoption and execution.
Method to Determine the Income Forecast for the Sustainability of the Profit Margin, the IFSPM Method
In this article, the author presents a methodology for accurately projecting sales budgets. Specifically, the methodology presents a series of five equations that can be used to determine the income forecast necessary for the sustainability of current profit margins, which the author calls the IFSPM Method. Examples are provided to demonstrate the methodology’s applicability in both project and service-driven businesses.
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.
In a market with increasing competition and decreasing customer loyalty, companies are increasingly moving towards more flexible and predictable subscription models and searching for new ways to engage customers with subscription models over the long term. In this article, the authors present five tips to overcome the challenges of moving to a subscription model and defining a successful pricing strategy.