Pricing and Monetization Strategy for Software Firms
Monetization strategy to improve your business
Pricing is the most powerful strategic lever that any company will ever find. More effective pricing will yield higher profits, better customers, and improved cash flow.
Better pricing replaces hard work
You were told that the path to profitability required hard work, increased functionality, improved quality and strong customer outreach. It's all a lie. Fixing your product's pricing and positioning is the fastest, most surefire way to earn greater profits.
Even if you understand that pricing is important, it can be difficult to get right. Just take a peek at some common software pricing mistakes.
Pricing is versatile
Pricing isn't just a means to maximize your profitability or cash flow. Pricing can be wielded as a strategic tool to weaken your competitors, enter new markets and even change customer perceptions.
You can even change your revenue model to reduce your risk.
Pricing is hard
Do phrases like decoy pricing, Veblen good and free rider mean nothing to you? You can read their definitions in my pricing glossary, but if those words seem mysterious, you probably need my help.
I'm not just your run-of-the-mill marketing consultant. I'm a software pricing specialist. I literally wrote the book on software pricing and will apply economic analysis to help you reach your business goals.
The monetization process
Clues that your pricing model is broken
- You can't explain how you selected your prices - Your prices should come from an analysis of your goals, your competition, your customers and your product.
- You chose your prices based upon costs - Your costs are sunk. They're irrelevant. Your customers don't care how much money you spent developing your offerings. They care only about the value that you provide.
- You copied a competitor's pricing - Are you selling the exact same product as your competitors? Are your business goals the same too? How about your reputation? Even if your competitors are similar to you, there's a good chance that they didn't put much thought into their own pricing strategies.
How can you help my business?
Although each engagement is tailored to my client's needs, my offerings generally entail one or more of the following:
- Mentoring: I'll guide you through the pricing journey and help you discover your ideal pricing strategy.
- Classes & Workshops: I'll teach you the major concepts in pricing so that you can improve your offerings.
- Marketplace Analysis: I'll investigate your offerings (along with your competitors') and produce a playbook for you to improve your pricing and business strategy.
Can you really help?
TapRun, LLC has been in business since 2014!
I hold a master's degree in business administration (MBA), another master's degree in software engineering and a PMI project management certification (PMP). I have helped companies large (Fortune 500) and small with everything from request for proposals to customized training.
Just answer these 10 yes/no questions and instantly receive a free customized report on how you can improve your business. Neither email address nor credit card is required.