Industries We Serve

In licensed software, there is little added cost with each added copy sold, e.g. we can assume the cost of customer support increases with the number of software licenses sold but the cost of distributing an additional copy is virtually zero.

The flip side, of course, is that software comes with a substantial sunk cost. Thus, it is important that software companies know what features and functions, and what customer profile drives the highest willingness so they can price accordingly and quickly drive sales volume and profits.

Services companies, often more than other businesses struggle to set prices. They are often unsure about the value they deliver, and especially what would make them differentiated in ways that increase their customers’ willingness to buy and to pay.

The results are often that these companies leave unnecessary money on the table at the same time as they commoditize themselves. Understanding how value messages and differentiators affect sales volume at different prices eliminates leaving money on the table.

Manufacturers of hardware often use cost-plus as their pricing strategy (they add a fixed margin on top of cost). As a company’s manufacturing cost is unrelated to customer value, this leads to suboptimal sales volume and profits at the same time.

It is a guaranteed way to leave money on the table. Manufacturers that can better understand what specific features and functions that drive increases in sales volume and profits can leverage this into a pricing strategy that better captures their client’s willingness to pay.

Most SaaS companies provide their customers with different bundles of services; a good, better, best strategy. This is often a good way to capture both those customers that are more price-sensitive and those that want more features.

In order to optimize the effectiveness of this strategy, however, companies need good, dependable information on how features and functions drive sales volume and willingness to pay. So the bundles can have the right content and the right price to accelerate growth.

Educational and training content is abundant and much of it is free or very low cost. How then is it possible to stand out and command higher, profitable prices in such an environment?

Well, it is all about understanding what attributes of the buyer, the educational or training content, and how it is sold and delivered drives a higher sales volume at higher prices. How the company can differentiate itself in meaningful ways to the buyers and gain pricing power.

Almost any company can use our process for their product or service. Applications, where the process does not work well, are for companies with a large number of SKUs as each SKU represents just a small portion of overall revenue. It is also not applicable for companies that sell their products or services by individual negotiation and no real price list exists.