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Pricing Revealed: What Every Product Manager Should Know
- 1. Capture More Value from Your Products and Capabili7es
- 2. Mark S'ving • Director of Pricing at Maxim Integrated • Ph.D. in pricing from UC Berkeley • 1996-‐2000 Professor of Marke'ng at Ohio State – Pricing, market research, marke'ng models • Currently teach pricing with UC Irvine • “Impact Pricing: Your Blueprint for Driving Profits” • Blogger at Pragma'cPricing.com • Frequent speaker and coach on pricing 2
- 4. Pricing is … Complex Powerful Important Fun Psychological Qualita've Quan'ta've Never perfect Specific Customizable Dependent Emo'onal Informa'on Secret Risky Instantaneous Grading Common Dynamic A process
- 5. Pricing is … Complex Powerful Important Fun Psychological Qualita've Quan'ta've Never perfect Specific Customizable Dependent Emo'onal Informa'on Secret Risky Instantaneous Grading Common Dynamic A process
- 6. Pricing is … Complex Powerful Important Fun Psychological Qualita've Quan'ta've Never perfect Specific Customizable Dependent Emo'onal Informa'on Secret Risky Instantaneous Grading Common Dynamic A process
- 7. Pricing is … Complex Powerful Important Fun Psychological Qualita've Quan'ta've Never perfect Specific Customizable Dependent Emo'onal Informa'on Secret Risky Instantaneous Grading Common Dynamic A process
- 8. Pricing is … Complex Powerful Important Fun Psychological Qualita've Quan'ta've Never perfect Specific Customizable Dependent Emo'onal Informa'on Secret Risky Instantaneous Grading Common Dynamic A process
- 9. Pricing is … Complex Powerful Important Fun Psychological Qualita've Quan'ta've Never perfect Specific Customizable Dependent Emo'onal Informa'on Secret Risky Instantaneous Grading Common Dynamic A process
- 10. Pricing is … Complex Powerful Important Fun Psychological Qualita've Quan'ta've Never perfect Specific Customizable Dependent Emo'onal Informa'on Secret Risky Instantaneous Grading Common Dynamic A process
- 11. Pricing is … Complex Powerful Important Fun Psychological Qualita've Quan'ta've Never perfect Specific Customizable Dependent Emo'onal Informa'on Secret Risky Instantaneous Grading Common Dynamic A process
- 12. Pricing is … Complex Powerful Important Fun Psychological Qualita've Quan'ta've Never perfect Specific Customizable Dependent Emo'onal Informa'on Secret Risky Instantaneous Grading Common Dynamic A process
- 15. Key Takeaway #1 Know your Value – Charge what your customers are Willing To Pay
- 16. Will I? Which one? Value
- 17. Will I?
- 18. Will I?
- 19. Customers making the “Will I?” decision are not price sensitive
- 20. Which One?
- 21. Price has a powerful impact when customers choose “Which one?”
- 23. Differen'a'on
- 25. Percep'ons
- 26. VALUE IS PERCEIVED DIFFERENTIATION Create it Find it Communicate it
- 27. Key Takeaway #1 Know your Value – Charge what your customers are Willing To Pay
- 28. Different willingness to pay Segmenta'on
- 29. Is it fair?
- 30. Key Takeaway #2 Segment Your Pricing – Charge more to customers who are willing to pay more.
- 35. Behaviors
- 37. Products
- 38. Key Takeaway #2 Segment Your Pricing – Charge more to customers who are willing to pay more.
- 39. Por`olio Versions Complements
- 40. Anchoring
- 41. Will I? Which one? Complements
- 42. Complements?
- 43. 510 Acres
- 44. 25,000 Acres
- 45. Por`olio Google -‐ $1.70 per Android device Apple -‐ $576.30 per iOS device Source: CNN Money – Asymco: Google makes only $1.70 a year per Android device
- 46. Gefng Paid for Free • Free samples • Free trials • Free informa'on (like now) • Pay as you wish • Free network membership • Ad supported (sponsors) • Freemium
- 47. Key Takeaway #3 Build a Product Portfolio! Versions Complements
- 48. Key Takeaways 1. Know your value – Charge for it 2. Segment your pricing 3. Build a product por`olio