The Importance of Pricing Goals

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Is good Pricing necessarily about “making money”? Not really!
And that’s where most Product Monetization exercises fail… lack of 𝗣𝗿𝗶𝗰𝗶𝗻𝗴 𝗚𝗼𝗮𝗹𝘀!

Many assume a product must “make money”, but this is not always the case.
And by the way, what does “money” mean? revenue? profit?

Some examples:

  • Fair enough, Some products are designed to generate profit
  • Some are there to generate revenue (≠ profit!)
  • Some aim to penetrate the market
  • Some support other products and drive upsells
  • Some are part of a freemium strategy
  • Some are foundational products for other sales (e.g., hardware with subscriptions)
  • Some exist for compliance purposes
  • Some are meant to… lose money (loss leaders)

Too many teams overlook the importance of defining, sharing, and understanding Pricing Goals, leading to misalignments in pricing strategies and implementations.

Quick check: when you last discussed your product’s price, did you take the time to explicitly state your pricing goals? Where are they documented now?

If you’re (re)defining your prices and need guidance, I’ll add a link to download the free Product Monetization Canvas here

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