Digital Pricing

 

We offer a 1-day online workshop, using Skype, FaceTime, Zoom or your preferred platform, where you will be able to explore and calculate different pricing methods and business models, and apply them to your business. Up to 8 participants can join a session and it’s perfectly possible for some participants to drop in and out throughout the day.

Objectives:

  • Identify the points of value to your customers and set the right prices for your products and services
  • Use practical methods to test and evaluate
  • Create, analyse and refine the data/reports that inform your pricing decisions
  • Use simple tools to monitor your pricing strategy
  • Take rational decisions based on data
  • Plan for the future: anticipate change and how to adapt

Examples:

  • “Freemium”: which features should/could be free or paid; how to increase your percentage of paying customers by converting more of your free users; prioritising product development based on added value to your customers.
  • Returning customers: make sure that your paying customers keep coming back; understanding “churn” and how to reduce it; subscription models; volume discounts; up-selling and cross-selling; building pricing choices in to your future software development.
  • Understanding how customers choose. What are the motivations and the available alternatives and what factors determine those choices? Market analysis, testing and customer focus groups.

Requirements:

  • you will be asked to complete a short survey of your products/services in advance
  • no need for a venue, refreshments and a white board (we’re online)
  • a reliable, fast internet connection for each participant

Deliverables:

  • you will develop a pricing structure for your products/services based on measurable indicators and data
  • you will learn how to create testing and implementation plans for your pricing structure
  • you will understand the elements of your business that drive pricing and how to adapt when internal and external conditions change
  • optional: help with testing and implementation, project management, customer focus groups

Please contact us for more information

Business models and pricing

With the right price strategy, you will have happy customers who recommend you to their friends. And a healthy, profitable business.

How do you evaluate and set the right price? How and when can you best  introduce a price increase? Get these decisions right and your customers will continue to support your business, buying your products and services at the new price. Get the decision wrong and you could find yourself losing customers, or even risking the future of your business.

So, how do we calculate prices? How do successful business owners get it right? What is the correct balance between price and volume?

Often a physical product has a natural price range, because it has real world costs of production, an established market and perhaps a limited supply.

But in a service industry, some of these limitations don’t apply, or at least not in the same way. Often the main limitation on the services you can supply is your time.

When we are choosing the price for selling digital services, there are different factors to our cost price. Price per unit, per download, per month, per usage, per feature … there’s no shortage of choice in model. But which business model is best in our special circumstances, in the short, medium and long term? How do we find out?

Digital services pricing must also reflect the high development cost to guarantee scale and stability.  Users have an expectation of permanent  improvement through continuous development. So although the incremental cost of adding a customer to a platform may be very low, we must also ensure that our platform’s income exceeds the operational and other costs that we know we will face on a continuous basis.

Read more

Business model advice