Pricing Altitude

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