The pricing metric is the unit of consumption for which a buyer pays for your offer. It should track the value metric. The unit of consumption by which a user gets value. Changing the pricing metric is one of the most important things you can do to transform your business. When should you change your pricing metric? How do you go about doing this?

The Value Path is a powerful metaphor that brings together processes, performance, business outputs, and organizational goals to focus on value creation. The value path is a series of steps that results in value for the customer or end-user.

Willingness to pay (WTP) is a popular term in pricing, but it should not be used when designing pricing. It is an outcome of good value-based pricing work and not something that can be optimized directly. Pricing experts who claim to optimize for WTP are leading their customers astray.

Service-Led Growth (SLG) is a compelling growth model with a well defined growth flywheel. It is most relevant when introducing solutions to complex problems where a deep understanding of how the problem and solution fit together is important. Please join the Service-Led Growth group on LinkedIn.

For pricing to be effective, it should track the value metric. The value metric is the unit by which the product or service offering is consumed that best reflects how the customer gets value.

How would you price leadership training? Most people price per person trained. Is that the right approach in all cases? Here we explore some different ways to design pricing for leadership training. In pricing, the first question is how is value delivered, the second question is what to price.

Bundling is when companies and organizations group together multiple products and services to be sold and managed together. Bundles are meant to make it easier for customers to buy complementary goods and services. They make it clear what goods and services belong together. If packages are product management’s concern, then bundles are generally managed by marketing.

Three of the most important pricing questions are ‘What to price?’ ‘What to optimize?’ ‘How to optimize?’ Pricing experts have gravitated to how to optimize, but it is important to answer the other two questions first. Begin with what to price.

A pricing metric is the unit of consumption for which the buyer pays. An example of a pricing metric is dollars per litre for purchasing fuel. Choosing a pricing metric is one of the most important steps in designing value-based pricing.

Core Concept: Tiered Pricing Architecture, also known as a GBB or Good Better Best Architecture. Why is this pattern so popular? How do you design for it? What are the different approaches?

Core Concept: Conjoint and Discrete Choice Modelling are important tools for market research. In the context of pricing work, these studies can give insight into how different functions contribute to value. This is very useful in packaging and understanding how prices should be priced relative to each other.

One can learn a lot by comparing pricing pages. Here we look at Thinkific and Kajabi to see what we can infer from the pricing curves in their tiered pricing architectures (sometimes referred to as GBB or Good Better Best pricing).

Deciding to change your pricing can be the easy part. Once you have decided on the change you need a way to communicate the change, lead your customers over into the new model, manage dissent, and make sure everyone is getting the value designed into the model.

You have developed some exciting new functionality, and want to factor this value into your pricing. How will you do that? Once you have adjusted packaging and pricing, will you check to make sure that customers are using the software in a way that delivers the value?

OpenView Venture Partners lives up to the promise of being a value-added investor and is a thought leader in areas like product-led growth and usage-based pricing. Each year, Ibbaka and OpenView publish our thoughts on pricing transformations for the coming year.

Value-based pricing and customer success are coming together into a new discipline customer value management. Prepare yourself for this transition with Ibbaka’s new course on pricing and customer value management. Sign up for updates on this course and to help us shape the approach.

Pricing strategy and tactics change as software categories go through major transitions. These transitions can play out across the technology adoption cycle, be part of major changes (like the shift to SaaS) or part of the normal commoditization that all successful categories go through. The Digital Asset Management (DAM) category is currently going through the commoditization phase. This is what will happen.

What questions should you be asking about your pricing as we begin 2022? The potential impact of inflation is one. Higher interest rates are another. How will you use pricing to increase the value of your company?

There are many ways for an organization to grow and many possible growth strategies to adopt. One can take a sales-led growth, or product-led growth, or service-led growth approach. Growth can come from existing offers or new offers. It can be organic or come from acquisitions. One can grow in an existing market or enter new markets. What is your growth strategy for 2022? Please take the survey. The results will be shared in March 2022.

In his excellent new book, Pricing for Growth (Jeff Robinson), asks us to adopt a growth mindset for pricing. A growth mindset (as opposed to a fixed mindset) assumes we are operating in a world full of opportunities that learning is central to execution. Will you adopt a growth mindset for pricing in 2022?