From Venture Connection - Workshop 8 at SFU
Speaker: Steven Forth form Net solutions.
- Pricing is a part of the innovation & the product!
- Understanding value provided to customer
- Segmenting the market, and the value added to each segment
You discount your Beta version only and only when you have a very compelling reason! Otherwise it even has to be 3 time more priced than regular pricing.
Features >> Functions >> Benefits >> Value Drivers >> Quantified Value Drivers.
- define the customer
- create the value
- define the product
- price it
- and apply the cost to build it
Cost has nothing do to with pricing!
What do we mean by VALUE ?
- for customer: has nothing to do with pricing
- Value is always relative to an alternatives, even if it is 'doing nothing'
- Price of next best competitive alternative
- we segment our market, when those segments received different values >> pricing
pushing the pricing power:
- Perceived risks
- switching costs
We can patten the pricing model & the product / feature !
Add values with bundling.
- find where the values are
- Then do the fencing and separate customer groups (fencing is a potential pricing metric)
- The relation between the segmentation size, cost for that segment, and the value delivered for that segment.
Fence by / Price by : support, bandwidth, upgrades, messages, storage,
Give credit back for lake of usage in Cloud structure usage
read this as best pricing article : http://blog.priceintelligently.com/blog/?Tag=Pricing+Pages
check this strategy: https://www.woopra.com/pricing/
All B2B software required some consulting services. --> SAS & IBM
SAP makes the implementation and installation hard, to create a huge amount of value with customizing services through service providers in the market.
4 basic style of freemium:
- free trial --> to drive conversions
- Free users add value to your market size . Create community .
- double sided market (Try to create a 2 sided market. Like Credit Card companies. / Nannies & Families (mybesthelper.com))
- people how they did not have to idea why they doing it for FREE!
Use the 'early stage pricing model check list ' you just start pricing.
Key themes for today:
- Pricing is the core of your offer.
- Pricing is a place to innovate
- price is how you frame the value you provide.
- It begins with understanding value to the customer (relative to their alternatives)
- Pricing is more than picking a number
Have you ever witnessed a craze for a product or a brand that is beyond explanation? Apple, Harley Davidson, BMW and few other brands have established their own identity, and their own cult following. These brands have very smartly created an emotional bond with their followers and have made them believe that what they are purchasing is more than a product. In a Business world, every brand works hard to promote their services, to create an unbreakable loyalty bond with their customer, but only few are able to achieve this connection. So let’s see, things that make these brands so unique and special:
Articles: Their role and effect in Search Engine Optimization
Articles are generally written to enhance awareness about the business and what it stands for. A well written article very affluently describes the products and services, which the business has to offer to its targeted customers. But when it comes to Search engine optimization, role of articles becomes much bigger and substantial.
Articles single handedly can create a niche for the business and mark it up in rankings on Search engine pages. Centered on main keywords, they make their mark in an influential way. The biggest benefit of these articles is that they can be submitted online on different platforms.
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