Technology Lifecycle Pricing (Part 1): Finding the Right Revenue Model for your Innovations
This is one of the hardest stages for companies on their pricing journey. More than likely, there is not a robust amount of customer data to inform the decision and despite the temptation to only solve the short term pricing need, it is essential at this stage to consider how the product will likely evolve in order to leave room for flexibility in the model.
Simon-Kucher often tells their clients, “How you charge, is more important than how much you charge.” For high-growth, early-stage technology companies we tend to think both are equally important but certainly it’s not just picking the right number.
Key takeaways from this webinar:
- From our experience with many different companies, we've created a framework for how to think about your "Pricing Archetype"
- Per user is a default for a lot of tech innovations, but there is a definite trend away from user or seat-based pricing
- Setting an initial price is not a science, but should be supported by as many data points as possible and a process to keep an eye on pricing over time
View the full Software, Internet, and Technology Webinar Series here!