November 24, 2014 by The Pricing Authority
Here are some suggestions to jumpstart an initiative to improve new product pricing for your business!
- Start with a team of the most analytical product managers, with input from product marketing and finance. Leaders who can compare the effort needed on value management with the cost of making product changes.
- Select a few pilot projects from the development pipeline and utilize the strategies to build price and value alignment early. Compare the results with conventional pricing strategies to get management buy-in.
Take the guess work out of pricing by incorporating value discussions early in the new product development process, including value analytics and sticking to the price/value decision throughout the process. Whether your product is luxury or economy, having a plan to create and capture more value will increase the chances of market success.