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Tamara Grominsky
VP Product Marketing & Lifecycle, KajabiSeptember 12

There are several different triggers that could spark this converstion - the launch of a new product/feature that is monetizable, competitive movement in the market, the decision to pursue a new adjacent market, an acquisition of a company, major changes in a key business metric, etc.

In any way, if you see an opportunity to re-investigate your current pricing and packaging, I'd suggest that you anchor it in one of these changes - this is a great way to frame the opportunity and help other stakeholders get on board. 

Since pricing touches almost all parts of a business, I usually recommend a fairly diverse stakeholder group including reps from Product, Marketing, Sales, Finance, Customer Success and Operations. Since there are so many stakeholders, I'd also recommend that you be clear on responsibilities and accountabilities up front.

A pricing committee is a really important vehicle for the cross-functional collaboration that's needed to set good pricing strategy. However, they often wind up being unproductive and highly dysfunctional. My advice:

  1. Nominate a strong moderator who can be a neutral “referee” and keep the stakeholders committed. This is not the person who is doing all of the legwork. 
  2. Cross-functional representation should include Sales, Marketing, Legal, Finance, Customer Success/ Account Management, Services, and Support. Bring in people from different layers of the organization, not just leaders. 
  3. Start pricing projects as a team, not when the research phase is already over.
  4. Manage meeting times tightly
  5. Define a decision making process. The U.N. Security Council serves as a good model for this. Everyone should have a say, but not everyone has veto power.
  6. Maintain ongoing dialogue, not just when there is a change that needs to happen
  7. Always do post-mortems after major decisions

More here.