In pricing, don’t forget to be fair
💵 Pricing fairness and value perception is a topic that too often goes overlooked. While value-based pricing, dynamic pricing, and personalized pricing models are excellent for capturing the full potential value (and willingness to pay) from each customer, they come with a notable risk – the perception of unfairness and a strong backlash to any […]
Pricing Models for AI Products
As Artificial Intelligence (AI) gains momentum, a diverse array of companies are seizing the opportunity to develop innovative AI-based products. Recently, I’ve had the privilege of discussing revenue models and monetization strategies with several of these organizations. While traditional pricing strategies are fundamentally relevant, AI products require careful consideration of specific factors to determine the […]
Pricing Maturity – The 4 A for strategic pricing organizations
When it comes to becoming true pricing champions, full pricing maturity does not come overnight. Companies must evolve through distinct stages to build a solid foundation and ultimately achieve mastery in pricing. Below are the four key levels of the Pricing Maturity Pyramid that organizations move through on their journey toward strategic pricing excellence: 1. […]
The dream of recurring revenue and the reality of subscription fatigue
Start looking at Recurrent Revenue with the eyes of your customers to avoid Subscription Fatigue: 3 major readjustments emerging in the subscription landscape From streaming services to fitness apps, we willingly hand over our credit cards, lured by the promise of seamless access and ongoing value. But what happens when the music stops and the […]
Stop getting obsessed with your competitors’ prices, start being obsessed with your customers!
I know it might sound counterintuitive, but focusing on your competitors’ prices is the worst thing you can do to increase your revenue and margins. Stay with me, and I will show you the Double-Edged sword of pricing intelligence and how to use value-based pricing in red ocean markets. Focus on Your Customers, Not on […]
The Product Value Triangle®: Why Good PMs (Even Tech Ones) Cannot Shy Away from Monetization & Communication
One of the questions I hear most frequently is, “What should Product Managers do?” or “What is a part of a PM’s job/role?” or even “What are some must-have skills to become or grow as a PM?” Well, while the exact role may vary among different companies, there are some elements (or areas) that are […]
The Tuna Fish Can Paradox
Does larger packaging always imply a discount or a lower price per unit? Not necessarily! 👇 Read the (real) story of how a major Swiss retailer prices their Tuna fish cans. We are accustomed to instinctively believing that larger packages mean “paying less” (per unit). The basic idea is that if you buy a family […]
Amazon Prime is playing the Digital Shrinkflation
So, Amazon Prime is increasing prices… again! But this time, they’re playing a digital version of “shrinkflation.” Pretty much every audio and video streaming service has seen their prices rise this year, with Netflix, Disney, and Spotify all announcing double-digit increases to their subscription fees in the last few months. Yesterday, Amazon announced something similar, […]
What’s the ideal frequency for tweaking your product’s pricing and offering? 🤷♂️
I hear people scared about “playing too often with pricing”, and others who see there an opportunity. Well, you’re all right! The right frequency largely hinges on the specific elements of pricing you’re looking to adjust. Here’s a breakdown: ✔ 𝐏𝐫𝐢𝐜𝐞 𝐏𝐨𝐢𝐧𝐭𝐬 📈: Adjusting your price points, can happen as often as every second, as in […]
How Disney+ is increasing prices by 38%, yet keeping the same price.
In the ongoing trend of digital and streaming services adjusting their prices, it is now Disney+’s turn to make changes. This demonstrates how inflation impacts pricing differently in each industry: Disney+ serves as a prime example, having recently announced double-digit percentage increases. To understand these changes, I will be focusing on the new pricing for […]