Pricing Is a Thing
We do Pricing. You make Profit.
You Probably Have
People who are specialists in Sales / Marketing / Product Management / Finance.
You Probably Don’t Have
Someone who is an expert in Pricing and Monetisation.
This is where we come in
With years of experience in various Industries, Tools, Methodologies and Business Models, the team at Pricing Is a Thing can support your business with solving your Pricing Puzzle.
And we LOVE a good puzzle!
Commercial Pricing Strategy
Pricing Is a Thing is a boutique consulting team, specilising in Commercial Pricing Strategy since 2018.
We have been helping companies in Tech, Fintech, Gaming, Data, Finance, Health, Retail, and Petrol (to name a few) in Designing, Implementing, and Reviewing their Pricing using scientific methods and advanced data analytics.
The Three Pricing Questions
SaaS or XaaS, ask yourself these questions before designing your pricing model:
- What should you charge for?
This is your Pricing Metric, and it should be aligned to your customer’s Value Metric
- How to charge?
This is your Pricing Model.
It can be “Good Better Best”, include membership or other fees, based on usage or tiered, flat subscription or varied based on customer segments, etc.
- How Much to charge?
Your Price Point is not static.
It should be frequently revised and tested to reflect changes in market dynamic, customer’s metrics and overall business strategy.
Core Pricing Concepts
If you just started looking into Pricing and you find it all a bit confusing, we’ve put together a little cheat sheet to help you organise your thoughts and start your journey with clarity and focus.
- Value Perception
Customer’s Value Perception Drives Price. Not Cost!
* It is different across customer segments
- Willingness to Pay
Can be measured, analysed, and influenced.
* It, too, varies across customer segments.
- Price Sensitivity
This is a powerful tool, when used correctly
It can be Descriptive, using a demand model to show the relationship between price and volume.
Or used as a Predictive tool, i.e. when using Price Elasticity to estimate the impact of a price change on sales, and by that, facilitate a series of in-depth pricing optimisation decisions.
- Advanced Pricing Analytics
Is a collection of methodologies and analysis techniques that help break down your services, features, and products into groups.
Each of these groups should have it’s own Pricing Strategy based on the distribution density of the group across Commercial Impact Metrics.
We use these to identify and group items, identify relationship between groups, and inform decision making regarding promotions, discounts, and new product / service / feature pricing.
- Deal Negotiation
When you have only a few customers (B2B) with each of them representing a high percentage of your yearly revenue.
Each of these customers should have their own pricing, terms, and deal structure modeled uniquely to their needs and yours.
Avoid This Pricing Mistake:
Don’t Copy Your Competitor’s Pricing Model
Pricing models are designed to monetise value.
We optimise them to leverage on what you do best.
If you copy a competitor’s pricing model, You are now charging for what They do best!
Design your pricing around your unique value proposition and relative advantage.
Did you know?
Since May 2021 Pricing Is a Thing is an approved Mentor of Pricing and Monetisation for the Boosting Female Founders Initiative by the Department of Industry, Science, Energy, and Resources contributing to developing female entrepreneurs in the Australian Startup Eco System.
Enter the world of Pricing as a service
Without data you are just another person with an opinion.”-Edwards Deming.
Tap Into Corporate Level:
✪ Pricing Analytics
✪ Revenue Optimisation
✪ Growth Strategy
✪ Monetisation Modelling
✪ Methodology Development
Leverage data-based pricing decisions.
Contact us to chat and learn more.