We're rolling out a new pricing model. How do you drive adoption from your existing customers when pricing variables change?
Few things to consider: 1] Your customer comms plan - when are you letting your customers know? Are you giving them a head's up? Are you letting them know why pricing is changing - e.g. new functionality that's drvcing additional value 2] Your internal enablement plan - for all teams that will ...more
B2B Pricing question: In your role working as PM & GTM or working with PE/VC/pricing consulting firms on company valuation & market assessment, Whats your go-to resource with frameworks & examples to conduct B2B pricing power assessment for a product?
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/PriceInte...more
I'm putting in my Product Marketing and Sales Enablement budget for next year. What line items should I consider / am I missing? I already have things like Customer Visits, a Sales Enablement / Content Management tool, SKO, pricing model consulting.
A few other things to consider: * Your team's research needs (qual and/or quant) * Any analyst-related spent (either for research reports or to engage w/ analysts) * Content-related needs -- always a good idea to work with a good content agency to flex your capacity when needed * And ...more
Pricing is tough. My questions are 1. How do you know that you have the right price/package structure pre-launch. 2. And how do you know that the price/packaging is still the best post launch.
Pricing is both tough and is not one-and-done - it has to be refreshed over time. While you can use research to figure out initial pricing for launch (see one of my other answers for details on figuring out willingness-to-pay (WTP)), you will need to reevaluate pricing over time to see how it nee...more
Who owns pricing? Product Marketing or Product Management? If both, how do you divide the responsibilities?
The answer really varies by company - I have seen instances of Product Marketing, Product Management, Finance, Biz Ops, and Sales Strategy teams own pricing. In an ideal world, the team that's both tasked with understand your products/market/customers and works closely w/ Sales is the best pla...more
When thinking about pricing, do you base it on competitive alternatives or the value you deliver to customers? And what are the marketing trade-offs when choosing either option?
Hands down the value you deliver. In an ideal world, you figure out the willingness-to-pay (WTP) for your product in the market, and set your price close to the WTP line (and above your costs). WTP is usually figured out through research, both qual conversations with customers, partners, and k...more
Your pricing inherently reflects the value of your products, and since competitive comparisons will inevitably come up in deals, you have to translate all your competitive research and market understanding into a compelling set of content and enablement for your Sales team so they can sell the "v...more
Single product pricing is (relatively) straightforward. When you go to multiple products, or multiple SKUs of the same product (e.g. a Standard Edition vs. Premium vs. Enterprise), the complexity explodes across multiple fronts - Ops/quoting, your website/customer comms, sales enablement, and rep...more
What have been your key learnings from any "Pricing/Re-pricing launch" that you have led/seen within your company?
Great question! Pricing is something that's never done, since you'll have to keep updating it over time (as your products evolve, the market evolves, or due to competitive moves). A few key things I find useful when working on a pricing change: * Setting up your approach to how you will develop...more
Not all launches are created equal, so it’s important to have a t-shirt sizing exercise upfront to determine how large a launch is (and hence what level of effort/mix of activities should be dedicated to launch). Once that’s done, the sooner we can put a launch plan in place, socialize that, and ...more