One of my favorite topics in enterprise software is pricing. Despite the work done in value-based pricing over the past 50 years, the vast majority of pricing exercises still start with either a very basic cost-plus or percentage-based ROI model. This assumption has a key issue: it assumes that your product is a commodity. To explain why and to explain how to take a more value-based approach, consider what a price is.
There are many ways to break down price, but the model AI uses to translate value into price comes from 3 basic components: Reference Price, Differentiated Value, and Price Positioning
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