Product versioning is the simplest and fairest mean to price discriminate. While it may sound unpalatable to the idealistic minds, price discrimination is actually better for customers and businesses. That is when done right. Else it becomes operationally expensive, ineffective in market or worse turns off customers. That is where even established businesses fail. I … Continue reading Recipe for Minimum Viable Versioning
Take a look at the pricing of the two lowest priced iMacs. The cheapest one not only has the lowest configuration but also allows no customizations to the CPU and Disk capacity. It cannot be that it is technically infeasible to support customization on this version. Moreover, it is not farfetched to think that, among … Continue reading Observations on iMac Pricing – A case of well executed versioning?
For the past two days NPR has been running a story (and here) on people who are forced to live on Government transfers like food stamps. Finding nutritious food they can afford in $600 food stamps is a monumental task for the parents. A mother was talking about, How it is cheaper to buy sugary … Continue reading The Tyranny of Versioning
Your product Plans/Pricing page lists multiple versions, most commonly 3 to 5 versions. The vertical columns are well crafted, graphically stunning and neatly arranged with all the right visual nudges designed in. Now the question, What is the minimum number of choice dimensions should the versions differ across? (A choice dimension can be either a … Continue reading A Simple Versioning Rule
I have used MindMeister more in the last two years than I do now. It is a great tool, web based and easy to get started with brainstorming. I think their versioning and pricing can be improved. Here are my specific recommendations: Versioning Recommendations: Do not use the label Premium version instead use Pro version, … Continue reading Some Versioning and Pricing Recommendations for MindMeister
[tweetmeme source=”pricingright”] There is nothing more profitable to a marketer than the ability to price the same product at each customer’s willingness to pay (and get away with it). The next best thing is to define one version for each customer with the right value-price combination. But there are costs to versioning, I wrote about … Continue reading The Science of Optimal Versioning in SaaS