At Fraction8, we believe that there should be an active relationship
between what your market wants and what you offer the market.
This means treating product marketing as upstream activity
and the retail offering as the downstream activity
in a continuously and iteratively self-improving process.
Fraction8 works with established B2B technology companies
who lack the time to focus on or the expertise to understand
who they are selling to and how customers want and need to buy.
Pricing is (Really) Important
Pricing is the exchange rate on your business
It Drives Decisions
The right set of choices can either attract people in or drive them away – and once you have them hooked, you want to reel them in.
It Drives Perception
Pricing is the exchange rate on the products and services your business offers – and whether you like it or not, people associate price with value.
It Drives Dollars
Really smart people have proven that a 1% improvement in pricing can increase profit by 11% – that’s better than selling more or cutting costs.
Pricing Can Be (Really) Hard
Pricing balances what buyers want and what the business provides
It Takes Time
It Requires Unique Skills
It Needs to be Easy
Although there is a lot of work needed upfront to get the first version in the ballpark, ongoing performance must be measured so that iterative changes and improvements can be made.
Pricing experts are skilled at distilling complex qualitative and quantitative data into a list of options, and then advancing those options into a set of actionable decisions.
Buyers have an information deficit and it is the vendor’s responsibility to minimize friction in the sales process and establish a transparent and trusting relationship with its customers.
But Pricing Generates (Real) Results
ROI is driven by aligning the offer to the customer,
which maximizes the price paid and the revenue generated.
Increase Average Deal Size
Increase Win Rates
Right-Size the Funnel
Crafting the right packages and the right add-ons at the right price will ensure that you are getting the most out of each deal
Putting a compelling value-driven offer that is easy-to-understand in front of prospects will result in more closed-won opportunities
Aligning packaging and pricing to your target markets will ensure they resonate with prospective buyers and customers
I Use a A Proven Method of
Understand the Market
Defining the Target Addressable Market
Knowing the total revenue opportunity for a product and/or service is critical for creating the right set of offers.
Being aware of what your competitors are offering and how they are offering it will give you important perspective.
Understanding The Buyer
Through Buyer Personas
Building buyer personas helps ensure that the offers you create are aligned with tailored to market needs and expectations.
Develop the Offering
Pricing can accomplish different goals – whether its market share, profit, liquidity, goodwill or something else.
The structure of the offering shapes decisions – number of plans, what’s included, what’s extra and what’s the price.
Each offer iteration has a projected performance in terms of revenue, expense, time to profitability and gross margin.
Launch the Offering
Most launches are best done quietly and inside-out to ensure that all client-facing staff are ready to do what’s needed.
Measuring Qualitative Performance
To understand what’s working and what’s not, talk to closed opportunities – whether they are won, lost and no-decision.
Measuring Quantitative Performance
To understand what’s working, track deal metrics, including size, real price, discounts, and attachment rates.
About Me (Ryan Glushkoff)
With over 20 years of technology industry experience,
Ryan Glushkoff has worked in both the pre- and post-sales
for both mass-market and custom-enterprise software companies,
which gives him a unique perspective on how SaaS companies
need to position, price and market themselves for success.