In new solution development, pricing and packaging is used to:
- Ensure the early adopter segment has the features they need to accomplish their goals.
- Limit the creation of unnecessary features until customers have validated the first release.
- Acquire data that will be used in future pricing design choices, such as the creation of fences.
After the solution is launched, pricing and packaging help organizations:
- Prioritize new features and feature enhancements.
- Introduce new packaging and new price fences that accelerate sales and increase profits.
Pricing and packaging design have a positive impact on the entire organization—everyone can see how their work helps customers succeed!
How does Pricing and Packaging work?
Our pricing and packaging engagements follow a proven six-step process:
- Understand triggers: We'll help you understand the triggers that indicate packaging and pricing need to be adjusted.
- Snapshot: We'll create a snapshot of all relevant pricing, ROI, and related artifacts. This helps ensure you assess all necessary artifacts in the packaging change.
- Gather data: We'll gather data that will inform the new packaging, such as feedback from sales and support teams calibrated with solution usage data.
- Design new packaging and pricing: We will help you explore the impact of specific packaging changes, assessing the impact of these changes on other aspects of your Profit Stream™, including economic modeling.
- Develop an implementation plan: Your implementation plan defines how you will execute your packaging changes. The best implementation plans are based on using your snapshot as a checklist to ensure you're
including key steps. - Implementation: We'll support you and your team as you implement your pricing and packaging changes.
By following our exclusive six-step process, you can be confident that your pricing and packaging choices result in a more sustainably profitable solution.
Where can I learn more?
Pricing and packaging design is detailed in Software Profit Streams: A Guide to Designing a Sustainably Profitable Business the Amazon Bestselling book by Jason Tanner & Luke Hohmann. Learn more about the book, the Profit Stream Canvas, and how you can increase profit at any stage of the solution lifecycle through Solution Profitability Management.