02 — Capability · BC-470.10
Pricing Strategy
Decide how the organization prices relative to the value it delivers and the alternatives customers have, and shape the tiers, metrics and models that express that decision.
- Price Positioning
- Monetization Strategy
- Price Architecture
In scope
- Value-based and competitive price positioning
- Price architecture across tiers and editions and bundles
- Pricing metric and model choices such as per-unit or subscription or usage
- Elasticity and willingness-to-pay analysis
Out of scope
- Deciding which products exist to be priced (see BC-510)
- Revenue plan targets (see BC-220)
Decomposes into · 4
- BC-470.10.10Value & Price PositioningEstablish where each offering's price sits against the value customers get and the prices of alternatives, and state the reasoning.
- BC-470.10.20Price Architecture & TiersDesign the ladder of editions, tiers, add-ons and bundles so customers can find a fit and upgrades make sense to both sides.
- BC-470.10.30Pricing Model SelectionChoose the metric and model the organization charges by, whether per unit, per seat, per use or subscription, and when to change it.
- BC-470.10.40Price Elasticity AnalysisMeasure how demand responds to price changes by segment and channel, from experiments and history, so price moves are predictions rather than guesses.