Standard Pricing

Creating a price model should take into account the following factors:

Pricing Strategy components

  • Company goals (revenues, profits, growth, brand image)
  • Product strategy and structure
  • Market lifecycle phase and price elasticity
  • Competitive analysis (offering/segment matrix)
  • Resource utilization (an internal metric that impacts pricing strategy)

Pricing Tactics components

  • Value (quantification based on customer business case analysis, comparison with competitors)
  • Market (product and pricing intel, brand considerations, positioning within price band)
  • Cost (fixed vs. variable)
  • Pricing model (units of measure, bundling, list prices)
  • Price globalization
  • Discounting structures and guidelines