Ever wondered what’s the secret behind commercial success and what is the role of Pricing in it? 🤔
Every for-profit company has two crucial tasks:
CREATE VALUE 🚀
➡️ This is where you innovate through R&D, product development, customer service, and improving processes.
➡️ Key players: marketing, product management, production.
CAPTURE VALUE 💰
➡️ This is how you get something in return for your offering using various monetization schemes. For instance:
Hotels charge per day for rooms (rental)
Car dealerships sell cars for a fixed price (one-time purchase)
Google offers a free search in return for your attention and sells ads based on it (auctions).
➡️ Key players: pricing, marketing, sales.
Why Does Product Innovation Matter? 💡
👉 Companies that don’t innovate risk falling behind. Just think of Kodak or Nokia - once industry giants, now irrelevant.
👉 Today, innovation is everywhere: AI, Quantum computing, and new tech are transforming the business world.
But there’s one thing that many overlook: pricing innovation.
Why Does Pricing Innovation Matter?
👉 Salesforce disrupted the CRM market with innovative SaaS pricing.
👉 Spotify has an amazing product but struggled until they raised prices after years of stability. The result? Profits for the first time.
Understanding how you monetize your offering is just as important as what you create.💎
Apple is a perfect example - focusing on product innovation & premium pricing to become the most valuable company in the world!👍😉
Interested in learning more about AI-Powered Price Optimization and Strategic Forecasting?
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