Pricing confidant

Exploring the art and science of all things pricing

elements of pricing

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Pricing Strategy

Your pricing strategy must be tightly coupled to your product and corporate strategy. For example, are you a premium player? Are you sacrificing short-term revenue to achieve economies of scale or network effects?

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Survey techniques

There are a host of survey techniques to help estimate willingness to pay, price elasticity, and other key metrics. Read more about Conjoint, Van Westendorp, Gabor-Granger, and Monadic surveys

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Pricing metrics

What’s the best metric for determining price? Historically, products were usually priced based per unit. However, with the rise of SaaS, the pricing approaches have exploded. You can price per month, per seat, per… whatever tracks customer value in a way to support your growth

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Segmentation

Customers are different and you shouldn’t price everyone the same… if you can help it

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Discounting

Is the price really right or is it too high? How should you best leverage discounting levers to accelerate growth and in what situations should you restrict discounting to preserve margin. It’s a controversial topic.

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Platform and SaaS Pricing

SaaS products open up a whole new set of pricing levers at your finger tips. Platforms, especially marketplaces, create a whole new set of complications and challenges. Dive into how to pick from the myriad options and often contradictory forces inherent in these business models

About US

I’m a pricing nerd. I started my career consulting on pricing related issues in wholesale power markets and pricing has been a passion of mine ever since. I’ve solved pricing challenges in SaaS, health care, platforms, retail, manufacturing, and financial services. It’s been a wild ride and this site is my attempt to explore and share my thinking on all things pricing.

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Articles

Guide to monetizing a marketplace platform (Part I)

What is a marketplace platform? Marketplace platforms connect buyers and sellers while often including functionality to solve more pain points in the transaction beyond connecting. For example, while Uber helps connect riders with drivers, it also tracks user...

Cost-plus pricing: The TV Dinner of Pricing

Pricing is challenging. Doing it well often blends concepts from diverse fields such as psychology, finance, marketing, statistics, and even calculus. Facing such complexity, some managers use an outdated, yet convenient approach called ‘cost-plus pricing.’ While...

Pricing First Principles

The engineering and science world has a wonderful concept called, 'reasoning from first principles.' In other words, you think about the core principles you know to be true and build from there. We're going to attempt to create a 'first principles' view of pricing...