[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
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
I have written over years on the pricing excellence of Apple, a well executed and repeatable strategy across its entire product line. You should look at my writings on price fencing, iMac pricing, MacBook pricing, iPad pricing, and of course iPhone Pricing. Now to iPhone 8, the big 10th-anniversary edition which is coming within a … Continue reading Why you will see a $1400 iPhone?
The New York Times subscription pricing was a mess. For a long time their pricing suffered from three major errors No branding for versions – Let alone branding, there was no names for the multiple different versions they offered. It was simply a mix of features and a price point thrown in. It is very … Continue reading The New York Times Fixing Pricing Errors
Take a look at the subscription pricing options from two leading national newspapers The Wall Street Journal and The New York Times. Take a few minutes to look at the two approaches to bundling and subscription pricing. Which one is done better and stand to drive more profit? What do these tell us about your SaaS … Continue reading 4 SaaS Pricing Lessons
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