4 Costs of Versioning

[tweetmeme source=”pricingright”]Versioning is about delivering multiple product (service) versions at different price points for targeting different segments. Since not all customers are alike and their needs and willingness to pay are different, versioning helps to reach a larger customer base. It is the right step in the direction of profit maximization. Pigou said, “if one … Continue reading 4 Costs of Versioning

Aligining Price With Value – Metering Vs. Versioning

In any  all you can eat pricing model, be it a lunch buffet or at&t iPhone subscription pricing, as long as the  total revenue  exceeds total costs, the business will make a profit  regardless of whether they lose money on any one customer.  There will always be a distribution of customers based on value they … Continue reading Aligining Price With Value – Metering Vs. Versioning

Pay What You Want Is Not Pricing Strategy

I have long advocated against Pay What You Want (or Pay What You Can) pricing. The lure of this however does not seem to go away. Recently it is back in vogue with Instpaper fame Marco Arment adopting this for his podcast app.  Predictably you see the social media latching on to this as a great … Continue reading Pay What You Want Is Not Pricing Strategy