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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: ProfitabilityCoherence 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

Case Studies

Contact Information

We are based in Dubai with clients in the US, Canada, UK and France

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