In a time of great uncertainty transfer risk from your customer to yourself. One way to do this is with usage based pricing. Layering in usage based pricing is a good pricing strategy to increase willingness to pay (WTP).

Value based pricing relies on a deep understanding of value drivers. In B2B pricing, the focus is often on economic value drivers. Most economic value drivers concern the profit and loss statement. But in some cases there are value drivers that impact the balance sheet. Understanding balance sheet value drivers is an important part of value based pricing.

One cannot plan pricing actions in isolation. Pricing excellence requires a portfolio of possible actions, with different levels of investment and different levels of risk and return. Learn how to build and manage your pricing action portfolio.

Is pricing a lever that can impact Net Promoter Score and Share of Wallet? How do these interact with

Good pricing decisions require data. By the time you need to take action, it is often too late to collect the needed data or data collection adds to costs and delays. You can avoid this by setting up your CRM, financial data, user surveys and most importantly your SaaS offer to collect the data you will need.

Companies taking a customer centric strategy need to think about how they price. The customer experience of a price change is one of the key things that should be design in any pricing action. How you go about designing and communicating price changes has a big impact on market acceptance and willingness to pay (WTP).

Many organizations will discount software subscriptions before they discount professional services. The logic is you have more room to discount where you have high margins. This is a strategic mistake and reduces long term profit and weakens competitive positioning. Discount professional services before software or data subscriptions.

Services unfold over time, and when you design a service and its pricing you need to make sure to consider how emotional and economic value unfold over time. Find some way to make sure buyers get at least some economic and emotional value early on.

Executives are looking for data-driven insights to make key decisions that will allow them to execute and drive their businesses forward. Business needs to strike the balance between what its market needs and what it can achieve with its talent. Leaders are tasked with driving business performance and outcomes—outcomes that are usually measured in terms of financial performance. The winning path to do this is to create value for our stakeholders while differentiating to stay ahead of the competition and to drive ongoing engagement with our stakeholders.

Category creation is one of the most powerful ways to build a business. For large companies creating new categories is a key to growth. For start-ups it is how to go about creative disruption. How does one approach value creation in a new category? What role does pricing play? Pricing is one of the pillars of a category creation strategy.

Pricing is one of the most powerful ways to change up your business. There are many different pricing actions you could take, so how do you decide which to invest in? Treat your pricing actions as a portfolio. Make sure you are design pricing to accelerate learning.

Your pricing operates as a system. Change one part, a price level for example, and other parts of the system change as well. Designing pricing and them changing or evolving pricing requires a systems thinking approach.

Dynamic pricing is a hot topic in pricing circles. Some experts are predicting that it will dominate pricing in the future. As sellers move to dynamic pricing buyers may move to dynamic buying. This sounds a lot like automated trading and machine auctions. Is this the best direction for pricing? Will it lead to transparent, consistent and fair pricing? At Ibbaka we believe performance-based pricing is often a better option.

Pricing consultants can change your business, letting you set prices more effectively and drive higher profits. Or they can bog you down in process and analysis paralysis. When should you hire a pricing consultant? How should you make your choice? This post gives the essential guidance.

Pricing expertise has a direct impact on enterprise value. Private equity firms are looking at pricing as one of the first areas to improve when the take over a company. Analysts are paying more and more attention to pricing as they evaluate public companies and make buy/sell recommendations. What are the five questions boards need to be asking leadership teams about pricing?

Traditional jewelry is priced on the value of its materials with a premium for brand. Over the past few decades, an alternative has emerged known as art jewelry. As the name suggests, the price of art jewelry is similar to the price of art. It is driven by reputation, collectability and requires engagement from museums to create a market.

Lifetime customer value (LTV) is one of the most important SaaS metrics, one that many teams manage to. Pricing is one of the most powerful levers for framing lifetime customer value and any subscription pricing strategy needs to be designed and evaluated for its impact on LTV and other unit economics.

One high impact pricing tool is Segmented Price Variance Analysis. This tool was developed by Dick Braun, VP Pricing at Parker Hannifin, one of the most respected practitioners in the pricing industry. Dick gave a compelling overview of this and other tools at his keynote address to the Professional Pricing Society.

The growing demand for pricing experts, changes to revenue models (especially the rise of the subscription economy) and the introduction of new technologies (AI and specifically machine learning) was changing the skills needed for pricing expertise and opening new job opportunities and career paths. Our research resulted in a competency model to help train and develop pricing experts.

Majid Iqbal introduced a new model for integrating value, price and customer experience in his book Thinking in Services. We compare this model to other models from the pricing space to see what we can learn from it.