“Do you have a clear pricing strategy?”

Many of us do not, and it is a problem.

My clients are Founders and CEOs building companies focused on cleantech, renewable energy and artificial intelligence & healthcare. Most of them are engineers by trade. They are highly proficient at building products, understanding features and are comfortable with technology, which makes sense.

“By rule, businesses need to innovate to survive yet the failure rate for innovation is shockingly high. Nearly three out of four new products or services miss their revenue and profit goals – or fail entirely.”

This is taken from “Monetizing Innovation: How Smart Companies Design the Product around Price”, by Madhavan Ramanujam and Georg Tacke.

Develop Products & Services AND Make Money

Recently, I have been focused on, and interested in, the numerous ways that you can productize technology while developing a go to market strategy. This is complicated work, and some of the lessons learned in Monetizing Innovation have been helpful to me. Let’s take a look at some of the more salient points:

• understand the customer’s willingness to pay early in the game
• don’t default to one-size-fits all product solutions
• in product design, configuration and bundling is more science than art
• go beyond price point – pick the right monetization model
• understand the goal of your pricing strategy before you select it
• build a business case from the outside-in
• communicate value
• use behavioral pricing techniques
• maintain price integrity

Too often, products and services are designed without enough input into the pricing strategy. Any one of these talking points are worth a closer look, and I highly recommend the book.

Thank you Jason!

Are you a Founder, CEO or entrepreneur ready to take the next, big step?

I’d like to hear more about your personal journey.