Pricing & Packaging Design

Leverage market segmentation and customer benefit analysis to design tailored pricing and packaging.

What is Pricing & Packaging Design?

Pricing & packaging design addresses two critical solution elements:

What is the optimal collection of features for each customer segment?
What is the price a customer is willing to pay to achieve the promised value to maximize profit?

Pricing & packaging are foundational parts of Profit Stream Design, guiding crucial decisions regarding positioning, licensing, ROI modeling, and product backlog prioritization.

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Agile methods are great at adding Features to solutions. Unfortunately, simply stuffing more Features into a Solution can cause sales to slow as customers start to question whether the Solution meets their needs. Proper packaging makes sales easier because customers know that the Solution they're buying is designed for them.

Ready to increase profit with improved pricing & packaging?

af-pricing-packaging-solution-benefit-map

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.

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What is a Profit Stream?

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