Crafting Scalable Price Architectures Aligned with Value
This session helps teams choose pricing architectures that scale as products and usage evolve. It moves beyond metric selection to address how price structures behave over time, especially when value and usage do not increase in simple or linear ways.
Key Takeaways:
1. There are 3 key challenges that can arise from your pricing strategy design:
- Customers don't accept pricing (despite using a research-backed, value-aligned metric): Focusing solely on the price metric is insufficient; the scaling method itself can impact customer satisfaction and willingness to pay.
- Value doesn't scale linearly with usage: Each additional unit of a metric may not provide the same value to the customer.
- Unpredictable metrics requiring flexible pricing: When usage is hard to forecast, the price architecture should accommodate this uncertainty.
2. There are several options for scaling price in accordance with your selected price metrics, including but not limited to these 8:
3. Choosing the right curve is a matter of considering your Market Factors, Product Factors, and your Objectives
Recording
Slides
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Slides
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Transcript
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This session helps teams choose pricing architectures that scale as products and usage evolve. It moves beyond metric selection to address how price structures behave over time, especially when value and usage do not increase in simple or linear ways.
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