OnDemand WTP Pricing Research

Nine Ways to Innovate with Your Pricing | destination innovation

We tend to think of innovation in terms of new products and services. But the need for innovation applies to a far broader range of business activities. You can innovate with your methods, processes, route to market, supply chain, marketing, partnerships and indeed with your fundamental business model. One neglected area for innovation is pricing. How can you be innovative with the monetisation of your value added?  In what new ways can you get paid?  Most companies set a price list for their products and services and then offer deals, discounts and negotiations. Maybe they are missing a trick. Let’s consider some alternative approaches:

Turn your Product into a Service
Rolls Royce sold engines for aircraft and made money from selling spares and maintenance. They changed their business model to a service package called Total Care which covers predictive maintenance and overhaul activities. By charging customers on a $/engine flying hour basis, Total Care transfers the downtime cost risks for airlines and makes reliability and flying time a driver for profit for both the customer and Rolls-Royce.

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Nine Ways to Innovate with Your Pricing.

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