Whats your go-to resource with frameworks & examples to conduct B2B pricing power assessment for a product?

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6 Answers

Pricing and Packaging Competitive Positioning

Natalie Louie

ICONIQ Capital Product & Content Marketing | Formerly Replicant, MobileCoin, Zuora, Hired, Oracle, Responsys • 5y

If you want the highest company valuation possible, you need a recurring stream based on a value-based and/or usage-based pricing model. Investors and Wall Street value recurring revenue streams at a much higher multiple than one-time transactional revenue because they are predictable revenue streams with higher profit margins that build longer customer lifetime value. This is why many companies are moving to subscriptions. There are 4 key levers in determining your recurring pricing strategy fo ...Read More

2,155 Views
Akshay Kerkar

LaunchDarkly Vice President Product Marketing • 4y

Figuring out the willingness-to-pay (WTP) by conducting research for your product with your target market/buyers is an effective approach. I've mentioned more details in a previous response.

There are lots of good articles on WTP research (including HBR). Also checkout the Profitwell/PriceIntelligently blog for some good articles on pricing.

1,149 Views
Vishal Naik

Box Head of Product Marketing, AI & Platform | Formerly Google Gemini • 3y

Generally speaking, developer platforms bring about more customer usage and higher customer retention, so from a pricing standpoint, I tend to not get too deep on how to price dev tools–because the long term approach of healthy revenue generating customers is more valuable than a short term lift in charging for access to the platform. If you’re really getting serious on pricing, I’d suggest you look to a research firm to do some discrete choice modeling for you.

811 Views
Srini Nirmalgandhi

Salesforce Head of Product Marketing for Heroku • 5y

Pricing is hard, especially when the product price has to extract the maximum customer willingness to pay and still leaves some customer value. There is plenty of resources on the web you can find and I don’t want to recommend anything here. From my experience, here are a few things that will be helpful when pricing your B2B product. Good research from interviews and surveys from existing / potential customers, supplemented by consulting firms’ pricing models is a great start. Trade-offs between ...Read More

3,590 Views
Aaron Brennan

5y

So I have done a lot of work with Profit Well, they have some great frameworks and suggestions for building Pricing and packaging. The ideal scenario for me is to find out what I am building towards, what is our goal. Is it a land grab, are we just trying to get as many people as possible or are we building towards revenue and that is the biggest driver. From there you should be able to find the framework that either brings in more registrations or optimizes for revenue in order to make sure you ...Read More

1,092 Views
Ajit Ghuman

Twilio Former Director of Product Management - Pricing & Packaging, CXP | Formerly Narvar, Medallia, Helpshift, Feedzai, Reputation.com • 4y

Your question is about: The go-to-resource to conduct B2B pricing power for a product. There really isn't any go-to-resource, its a set of things to consider such as: 1. Brand Power: Is the product the category leader? Do customers trust the brand? In this case the brand is likely to have more pricing power than competitors. 2. Net Dollar Retention Rate: Numbers of NDR above 130 generally indicate that customers increase usage of the product and spend more with the company. 3. Discounting Rat ...Read More

597 Views