06 February 2018
Is the price right?It was great delivering a #productmanagement pricing masterclass at synetics solutions last week - a very impressive team.
Here’s a thought to start the week off - for a typical software provider, a 1% increase in price nets a 7% increase in profit. By contrast, a 1% decrease in fixed costs nets a 4% increase in profit. How much time does your organisation think about cost reduction versus price refinement? Price is nearly always an afterthought, when it should be front and centre of a product managers thinking from the start of new product assessment and continuously reviewed and refined through the lifecycle.