An incisive and accessible blueprint to pricing your company’s products and services
In The Pricing Model Revolution: How Pricing Will Change the Way We Sell and Buy On and Offline , world renowned pricing expert Danilo Zatta delivers an essential and engaging blueprint to building an enduring competitive advantage with insightful pricing models. In the book, you’ll learn to identify the best monetization approaches for your products and how to execute the one that makes the most sense for your business. From freemium to subscription, pay-per-use, and even neuropricing, the author discusses every available option and shows you how to choose.
Although it's rigorous and evidence backed, The Pricing Model Revolution avoids an overly academic perspective in favour of providing you with concrete, practical guidance you can apply immediately to start generating more revenue. You’ll learn things like:
How to make smart and innovative pricing a core component of your next product offering
How to distinguish between every new, future-oriented monetization approach
Which factors to consider when you’re choosing on a new pricing model for your most popular products
An essential read for C-level executives, managers, entrepreneurs, and sales team leaders, The Pricing Model Revolution belongs on the bookshelves of every business leader seeking to learn more about one of the foundational topics driving top-line revenue and bottom-line profitability today.
Author(s): Zatta, Danill
Year: 2022
Language: English
Commentary: Pricing Model Revolution, Way We Sell and Buy On and Offline
Pages: 258
Tags: Pricing Model Revolution, Way We Sell and Buy On and Offline
Cover
Title Page
Copyright Page
Contents
Preface
Acknowledgments
Part I The Pricing Model Revolution
Chapter 1 Monetization as a priority
Pricing: The New Source of Competitive Advantage
Triggers of the Pricing Model Revolution
The Pricing Model Revolution
Summary
Part II New Approaches to Monetization
Chapter 2 Pay-per-use/per-wash/per-mile/…
Case History
Analysis of Context
Paying by “Cleaned” Square Meters
Paying According to Individual Exercise
Paying for the Skill of Elaboration
Paying by the Mile
Power by Hour
Paying by Cubic Meter of Compressed Air
Payment by Weight
Adoption and Limitations
Summary
Chapter 3 Subscription pricing
Case History
Analysis of Context
Subscriptions in B2C
B2B subscriptions
Summary
Chapter 4 Outcome-based pricing
Case History
Analysis of Context
Origin
A click as a result
Kilowatt hours as a result
Hours of light as a result
Broken rocks as a result
Health as a result
Insured risk as a result
Transformation of pricing and of the company
Summary
Chapter 5 Psychological pricing
Case History
Case History – Altered Version
Analysis of Context
The nine behavioral pricing rules that make a difference
Summary
Chapter 6 Dynamic pricing
Case History
Analysis of Context
Origins and development
Main forms of dynamic pricing
Expansion and impact
Success factors
Expedients for avoiding non-optimal, or excessive prices
Summary
Chapter 7 Artificial-intelligence based pricing
Case History
Analysis of Context
Phases for Developing AI-Based Pricing
1. Data collection and cleansing
2. Training of the algorithm
3. Optimization based on forecasts
Applications of AI-Based Pricing: B2C and B2B
Geo pricing
Contract margin predictor
Churn minimizer
Discount predictor
Customer segmentation
Cross- and up-selling
Summary
Chapter 8 Freemium
Case History
Analysis of Context
1. Free
2. Freemium
3. Triangulation
4. Rules for successful freemiums
Summary
Chapter 9 Sympathetic pricing
Case History
Analysis of Context
Summary
Chapter 10 Participative pricing
Case History
Analysis of Context
Choose-what-you-pay (or pay-what-you-want)
Name your own price
Summary
Chapter 11 Neuropricing
Case History
Analysis of Context
Low prices do not ruin profit margins alone
Time and price
When payment causes pain
A wide range of offer inhibits buying
The context influences price perception
Gut decisions take place in the head
Summary
Part III How to Win
Chapter 12 Success with new pricing models
Case History
How to Succeed With New Revenue Models
1. Identifying perceived value
2. Setting up the new monetization
3. Changing the revenue model
Lessons on changing the form of monetization
Final Summary
Notes
About the Author
Index
EULA
