- Rising supplier costs and inflation are eroding margins and impacting customers' budgets.
- There is pressure from management to make a gut-feeling decision because of time, lack of skills, and process limitations.
- You must navigate competing pricing-related priorities among product, sales, and finance teams.
- Product price increases fail because discovery lacks understanding of costs, price/value equation, and competitive price points.
- Customers can react negatively, and results are seen much later (more than 12 months) after the price decision.
Product leaders will price products based on a deep understanding of the buyer price/value equation and alignment with financial and competitive pricing strategies, and make ongoing adjustments based on an ability to monitor buyer, competitor, and product cost changes.
Impact and Result
- Success for many SaaS product managers requires a reorganization and modernization of pricing tools, techniques, and assumptions. Leaders will develop the science of tailored price changes versus across-the-board price actions and account for inflation exposure and the customers’ willingness to pay.
- This will build skills on how to price new products or adjust pricing for existing products. The disciplines using our pricing strategy methodology will strengthen efforts to develop repeatable pricing models and processes and build credibility with senior management.