Pick Your Price Model
Determine the right pricing strategy. Learn when and how to use each pricing model.
Member Challenge
Your challenge:
- Limited or inaccurate market and customer data. Without accurate insights into consumer behavior, demand patterns, and competitive trends, it’s nearly impossible to effectively leverage psychology or perceived value.
- Overreliance on cost or competitor-based pricing. Focusing too narrowly on internal costs or competitor actions prevents organizations from optimizing prices to reflect the unique value they provide.
Our Advice
Critical Insight
Organizations have primarily focused on cost-cutting, acquisition, and improving operation processes and product innovation to achieve business profitability. For a long time, the need for dedicated resources and skill sets to build the right pricing model and strategy has been overlooked.
Impact and Result
- Adjust prices based on demand, competition, or other external factors.
- Use pricing strategies that leverage customer psychology to encourage purchasing decisions.
- Set prices based on the perceived value your product or service delivers to customers rather than on cost or competitor prices.
Research & Tools
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1. Pick Your Price Model Deck – A deck to help you determine the right price for offerings based on the customer and market.
In today’s volatile economy, a successful pricing strategy goes beyond setting a profitable rate; it clarifies how your products or service’s value and total cost of ownership (TCO) justify its price. By illuminating the full costs – purchase, implementation, and maintenance – against the promised outcomes, you help buyers see why paying more upfront can lead to greater long-term returns. Selecting the right pricing model (usage-based, subscription-based, tiered, or hybrid) and continuously refining it with data analytics and market insights ensures profitability and customer satisfaction. This dynamic approach keeps your offer competitive despite economic conditions and customer expectations shifting.
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Pick Your Price Model Storyboard
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2. Pick Your Price Model Workbook – A structured tool to help you prioritize which pricing models build the correct roadmap to ensure success.
This workbook is designed to help product managers select their price model and strategy.
It enables product managers to align the organization on a common educated price approach to managing their pricing strategy and processes.
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Pick Your Price Model Workbook
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3. Pick Your Price Model Executive Presentation Template – A best-of-breed template to help you build a clear, concise, and compelling price model strategy document for stakeholders.
This presentation template uses sample data from "Acme Corp" to demonstrate the price model project to executives to gain buy-in. Use this template to document your final pricing model decisions.
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Pick Your Price Model Executive Presentation Template
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