Successful pricing is a process, not a number

Successful Pricing is a process, not a number

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Setting the price tag may seem more fun than talking strategies, but there is no shortcut to successful pricing.

If you feel like jumping to the “pricing points drawing board” and throwing “random numbers” with your team, take a deep breath!

Then follow 4 simple steps to define:

  1. Pricing Goals: NO, “making money” is not a goal, YES you may decide to be unprofitable and YES, there is a need to repeat and agree with the team on what we aim at (Revenue? Profit? Market penetration?)
  2. Pricing strategy: HOW will you get there? Will you be fighting on pricing with competitors? Or did you identify any unique elements of value you can charge for?
  3. Pricing Model: You can’t talk about numbers until you know what they represent. Will you be charging per seat? Per usage? On a recurrent basis?
  4. Pricing Points: Yes, moment to write the numbers on your pricing page! But not before you’ve captured your customers’ WTP (Willingness to pay).

If you’re wondering how you move on through any of these steps, there are a lot of free guides on my personal website. Just head to the Articles section on this website

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