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Frame Value from the Customer’s Perspective

Your Price Metric Should Reflect How Your Customer Uses Your Solution To Create Value One key to a successful pricing strategy is to use an appropriate frame of reference, one that resonates with your customer’s point of view. In other ...

Freemium – How to Price Your Product for Free

Can you believe that there is a wrong way to price a free product?  That premise sounds a bit counter-intuitive.  Giving it away should be the easiest pricing strategy to implement.  Actually, it isn’t. Recently, a group of executives shared ...

Everybody Has a Pricing Problem

Yesterday I attended the MassTLC annual Innovation unConference  with hundreds of other professionals from the region’s high technology community including luminaries like Dan Bricklin and Bob Metcalfe.  The principle behind unConferences is ...

Leveraging a SaaS Value Story

Software-as-a-Service (SaaS) and more generally cloud computing are now widely accepted as a perfectly viable IT strategy for large and small enterprises alike. There are even services companies focused on accelerating the adoption of cloud ...

Are Value Maps Leading you Astray?

Everyone agrees that value is critical to business and that we should sell based on the value we provide and buy based on the value the purchase will create. But value can be a hard thing to communicate.  And what do we mean when they say ...

A Tough Year For Software: Thoughts on Driving Growth and Margin

A Guest Post by Tom Lucke It’s been a tough year for the software industry.  Enterprise IT budgets have been slashed, corporate layoffs have reduced the need for incremental seat licenses, and consumer PC sales are off. Even the supposedly ...

Managing Value Across Distribution Channels

Many B2B products are sold through distribution chains. Rather than buying directly from the original manufacturer, the end user buys from a value-added reseller (VAR), who sources the product through a distributor, who is partnered with the ...

Value is Dynamic (And Depends on Your Customer’s Business Situation)

Your customer’s success matters. It determines the value they place on your own products and services. Changes in economic conditions can have a big impact on how your customer sees the value of your offering.   As described in an earlier ...

Value Footprints and the Eye of the Beholder

Value communication involves telling an economic WIFM (what’s-in-it-for-me) story to a customer about your product. To be more precise, telling multiple versions of that WIFM depending on the specific stakeholder, because economic value, like ...

Using Economic Value Estimation (EVE) to Execute a Value-Based Strategy

In an earlier post we identified a number of challenges that managers face when executing a value-based strategy.  Tom Nagle and I discussed these during our recent webinar for the Professional Pricing Society.  Tom, of course, is well known as ...

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