Optimize Software Pricing in a Volatile Competitive Market
Leading SaaS product managers align pricing strategy to company financial goals and refresh the customer price/value equation to avoid leaving revenues uncaptured.
Member Challenge
Your challenge:
- Rising supplier costs and inflation are eroding margins and impacting customers' budgets.
- There is pressure from management to make a gut-feeling decision because of time, lack of skills, and process limitations.
- You must navigate competing pricing-related priorities among product, sales, and finance teams.
- Product price increases fail because discovery lacks understanding of costs, price/value equation, and competitive price points.
- Customers can react negatively, and results are seen much later (more than 12 months) after the price decision.
Our Advice
Critical Insight
Product leaders will price products based on a deep understanding of the buyer price/value equation and alignment with financial and competitive pricing strategies, and make ongoing adjustments based on an ability to monitor buyer, competitor, and product cost changes.
Impact and Result
- Success for many SaaS product managers requires a reorganization and modernization of pricing tools, techniques, and assumptions. Leaders will develop the science of tailored price changes versus across-the-board price actions and account for inflation exposure and the customers’ willingness to pay.
- This will build skills on how to price new products or adjust pricing for existing products. The disciplines using our pricing strategy methodology will strengthen efforts to develop repeatable pricing models and processes and build credibility with senior management.
Research & Tools
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1. Optimize Software Pricing in a Volatile Competitive Market Executive Brief - A deck to build your skills on how to price new products or adjust pricing for existing products.
This Executive Brief will build your skills on how to price new products or adjust pricing for existing products.
The disciplines you make using our pricing strategy methodology will strengthen your teams’ efforts to develop repeatable pricing models and processes and build credibility with senior management.
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Optimize Software Pricing in a Volatile Competitive Market Executive Brief
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2. Optimize Software Pricing in a Volatile Competitive Market Storyboard – A deck that provides key steps to complete the project.
This blueprint will build your skills on how to price new products or adjust pricing for existing products with documented key steps to complete the pricing project and use the Excel workbook and customer presentation.
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Optimize Software Pricing in a Volatile Competitive Market – Phases 1-3
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3. Optimize Software Pricing in a Volatile Competitive Market Workbook – A tool that enables product managers to simplify the organization and collection of customer and competitor information for pricing decisions.
These five organizational workbooks for product pricing priorities, interview tracking, sample questions, and critical competitive information will enable the price team to validate price change data through researching the three pricing schemes (competitor, customer, and cost-based).
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Optimize Software Pricing in a Volatile Competitive Market Workbook
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4. Optimize Software Pricing in a Volatile Competitive Market Presentation Template – A template that serves as a guide to communicating the Optimize Pricing Strategy team's results for a product or product line.
This template includes the business case to justify product repricing, contract modifications, and packaging rebuild or removal for launch. This template calls for the critical summarized results from the Optimize Software Pricing in a Volatile Competitive Market blueprint and the Optimize Software Pricing in a Volatile Competitive Market Workbook to complete.
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Optimize Software Pricing in a Volatile Competitive Market Presentation Template
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