Figuring out how much to charge for a new product or service is always a piece of a successful business plan. But in our experience, it's a topic that often gets overlooked, despite the problems that a poorly designed business model creates.
Consider this: it's typically much harder to raise prices than lower them. So while it's tempting to cut prices to take share and drive publicity at launch, it's important to think about how the market might evolve, and what flexibility you have to increase revenue if the business doesn't evolve the way you expect it to.
Featured reports (Free download)
Does that mean pricing beneath competitors is a bad idea? Not necessarily. But it does mean that the way you charge customers, and the actual price of the service, need to be aligned with customer expectations, delivery capabilities, and the financial and strategic goals for the product.
It sounds complicated, but there's a way forward. We have a lot of experience in business model design and pricing, and help clients figure out how to turn their business model into a competitive and strategic advantage. Whether you're doing business model design for a brand new product, or launching new products within an existing ecosystem, we can help. Contact us to find out how.