Pricing model definition

Pricing begins with a solid pricing architecture which is followed by packaging (and/or product optimisation) and then price setting. A pricing architecture entails three interconnected components:

1. Monetisation model (e.g. subscription vs. one-time fee)

2. Menu structure (e.g. modularisation vs. Good-Better-Best)

3. Price metric/carrier (e.g. price per user vs. price per usage)

​

When defining the pricing architecture, we need to evaluate and quantify four key criteria: Profitability, Coherence with future growth, Risks and Implementation costs (time & money). The relative importances of these criteria would be different for each business. However, a solid choice of pricing architecture would be backed by data-driven estimation of impacts across these four key criteria by leveraging customer intelligence, competitor intelligence and cost intelligence.

​

To help businesses select the right pricing architecture, Pricing Stratz possesses the in-depth know-how to:​

• Acquire these intelligences (customer, competitor and cost) from diverse sources

• Apply basic and advanced analytics on these intelligences to evaluate the four key criteria

• Test the selected pricing architecture with real customers and/or prospects