Price elasticity of demand and cross-price elasticity interact in important ways. Learn how these two critical determinants of demand interact and how this conditions your pricing strategy.

There are many ways to innovate on your pricing metric to get a closer correlation with your value metrics and business model. Heathrow Airport provides an interesting case study. Note how they use different pricing metrics for inbound and outbound flights!

Ibbaka intern Joyce Yam reminisces about her time spent as an intern at Ibbaka and what she learned about pricing and data analysis.

Customer centricity as defined by Peter Fader is emerging as a strong alternative to product led strategies. To win with this strategy you need to pay close attention to customer segmentation and then price with an eye on the value you create for your best customers.

Ibbaka is focussed on the pricing of innovations, so we get to see a lot of innovative organizations. One thing we study is how organizations are designed to support agile and sustained innovation. Here is an example of one organizational design pattern that works

Viral business models are among the most compelling, when they work. Value and pricing are key variables here. Design value into the interactions and make sure that pricing is enhancing virality.

Pricing transparency and fair pricing are becoming hot issues. Buyers want to believe their pricing is fair and reflects the value they receive. What does it mean for pricing to be fair and how do you communicate fairness?

Embracing the Japanese aesthetic of wabi-sabi, this blog explores beauty in imperfection and impermanence. It challenges the pursuit of perfection in a world that often overlooks the unexpected and unaligned. Through reflections on art, innovation, and competency models, it advocates for valuing the unique and remarkable over the flawless and standardized.

While appealing to emotions may seem intuitive within the B2C environment, there are often questions around whether emotional value creation really matters within the B2B environment. That is, is there room for emotions if it is “just business”?

Kyle Poyar of OpenView Ventures moved from top pricing consulting firm Simon-Kucher to the venture capital firm OpenView. He shares what he has learned about pricing in high growth rapidly moving companies.

Innovation often comes from looking outside one’s own industry. Caspar de Bono is part of the leadership team that led the Financial Times from a past as an advertising based print publication to a future as a subscription driven digital publication. This has generated enough additional cashflow to fund an increase in editorial investment. Pricing innovation was a critical part of this.

Pricing models are how you structure the pricing of your product or service. It is where all the different aspects of your pricing strategy and tactics come together. Here is a simple primer on pricing models and how to build them.

In many industries the pricing metric and even pricing levels are frozen accidents. They were established in the past for reasons no longer known and endure through convention. Look at your pricing and ask questions. “Why this pricing metric?” “Whose interests does this pricing metric serve?” “How does pricing shape profit pools?” Pricing’s past does not need to determine its future.

Many companies struggle with pricing alignment without even being aware it is an issue. In some cases there is confusion on goals, or perhaps too many goals. In other cases the different parts of the organization are pulling in different directions. You can get insight into pricing alignment at your company by having different people take a pricing self assessment and comparing the results.

The CEO should play a leading role in pricing strategy and demand a high level of execution. Pricing is too important to leave to experts. It is one of the most powerful strategic levers a business has. What are the ten top questions a CEO can ask to help improve pricing practices at their company?

Your customer touches you many times across the company journey. Are you creating value at each touch? Are you communicating your differentiated value? Pricing power comes from differentiated value, but this only matters if you communicate that value.

The Professional Pricing Society annual Spring Conference and Workshops was held in Chicago May 2 to 4 of 2018. Ibbaka presented the preliminary results of its research with TeamFit on the skills of pricing experts. We also introduced our pricing Self Assessment tool. Both were well received. Tim Smith of Wiglaf Pricing presented a well thought out way to structure the Pocket Price Waterfall and connect to pricing governance. Simon Kucher Partners had a good talk on connecting pricing to digital transformation.

Willingness to pay (WTP) is one of the most abused terms in pricing work. Lazy consultants use it as a proxy for value. It is not. Market researchers think of it as something to be measured. Pricing strategists look for ways to shape WTP through marketing segmentation, value communication and a pricing model that connects price to value.

Tom Nagle basically defined strategic pricing, developing the core ideas and frameworks used today to understand differentiation value, construct a pricing strategy and execute on pricing in the field. Ibbaka spoke with him about the skills needed for pricing expertise.

Pricing thought leader Tim Smith share his insights into the skills required for pricing expertise and how he trains people to move freshly minted MBAs to pricing analysts to pricing consultants. He also speculates on how pricing software will need to evolve to meet market needs.