Willingness to Pay (WTP) is one of the most popular, and slipperiest concepts, in the pricing world. Three key things to remember: (i) WTP can be shaped, it is not a given, (ii) WTP is a distribution and not a point, (iii) the shape of the WTP distribution impacts your pricing strategy.

A/B testing has become a standard best practice in marketing. When and how should it be applied to pricing?

Even if you have a highly differentiated, value-added offer and are able to charge a premium without much customer pushback, your pricing should not aim to recoup the full value you create for your customers. Your price should leave a consumer surplus - that is, the customer should feel they are getting more value than the amount spent, as value perception is key to the sustainability of any good pricing.

Applying systems thinking to your business can help you see how the different parts reinforce each other. In The Amazon Way on IoT consultant john Rossman describes this as the flywheel. Design your pricing to make sure that flywheel keeps spinning and building momentum.

Good pricing design will encourage users to adopt tha behaviors that will create the most value for the user. Over the long run, that is what will build differentiation value and increase pricing power for the vendor. BJ Fogg and Nir Eyal provide models for how to do this.

In the Sixth Edition of The Strategy and Tactics of Pricing, Tom Nagle and Georg Muller introduce the Value Cascade. This is a powerful framework for identifying value and pricing leaks. Use it to ask yourself hard questions about how you create, communicate and capture value.

Pricing strategy and design work inevitably includes a lot of numbers. Too often, we focus on the numbers describing the numbers, averages, medians, standards of deviation. In most cases, the shape of the distributions is as important as the absolute values.

Pricing is a critical capability where the skills required are changing rapidly. TeamFit is partnering with Ibbaka to explore. Professional Pricing Society.

Change can be hard, especially pricing change, which touches on so many different parts of the organization and which requires buy in from your customers. What are the small steps you can take to get started on your pricing journey.

There is an unspoken discount that most SaaS companies are faced with. This is the risk discount. Buyers are not sure if your product will deliver the value you claim it will, and that they hope it will, so they levy a risk discount. One way to improve your pricing power and increase your price is to reduce this perceived risk.

There is wide agreement that differentiation is critical to effective pricing, but what is differentiation and how do you create it? Enhance an existing value driver. Create a new value driver. Find a new market for your existing or new value drivers. In this post we look at the three basic ways you can develop differentiation for your offer and what these imply for your product and pricing strategy.

Pricing excellence requires organizational alignment on pricing. Corporate culture plays an important role in this. It is critical that finance, operations, product development, product marketing and especially sales are aligned on pricing success. Without alignment, it is difficult to execute on adaptive pricing.

Delve into the intricacies of the unconscious mind with insights from Dr. John Bargh's book, "Before You Know It." Explore the concept of the visible future and its impact on decision-making, both for individuals and businesses. Discover the importance of skill management in shaping the future trajectory of companies, and learn how TeamFit's inference engine simplifies the process by capturing skill requirements and aiding in strategic planning.

As of 2024, The LinkedIn Design Thinking Group has now surpassed 339,000 members. In 2017, the LinkedIn Design Thinking Group was at 100,000 members, and its growth has continued steadily.

How does pricing fit into the customer journey? Customer journey mapping has become a critical tool in the service design toolkit. Understanding how to introduce pricing and how to communicate about pricing over the customer journey is an important part of pricing work.

Three ways pricing is changing and how this will impact your business.

Pricing excellence is emerging as a core area of business expertise. Take this short survey to explore the business value that pricing excellence can bring to your company.

On Thursday, January 18 we will co-host a webinar with Keboola on data driven strategies to optimize profit. See our events page to sign up Are you collecting the data you need to improve pricing? How are you putting that data to use? Do your target customers understand the value of your offer?

At Ibbaka we are looking forward to 2018, and to helping our clients price their offers more effectively. Pricing begins with a deep understanding of emotional and economic value and is built on a foundation of market segmentation and customer targeting. So that is where we start. We help to find your pricing strategy, set prices and then to collect and interpret data so that your pricing can evolve and shape the market.

Good market segmentation brings together customers that buy the same way and get value from a product or service offering the same way. It ensures optimized use of an organization’s resources through targeting customer segments who derive value from the offering in a way that is in alignment with the organization’s objectives of maximizing revenue, profit or margin at a reasonable cost to serve. Market segmentation is the foundation of value-based pricing. In value-based pricing the goal is to capture a fair share of the differentiated value of an offering relative to the customer’s next best competitive alternative.