Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Digital Pricing Strategies      & Lessons Learned                       Bob Pritchett                Logos Bible Software
Income > ExpensesSecret of Profitability
 The best price makes a profit and brings  the customer back. The value should be real, and you should  be proud of it....
   Different messages:    ◦   Limited Time    ◦   Exclusive    ◦   Best Price    ◦   Auction   Different channels:    ◦ ...
   Have multiple price points    ◦ Users know which bear they are      Let people choose a size    ◦ Always have a way f...
 Good for the user (better value) Good for the vendor (fewer transactions) Spreads costs of narrow products Monetizes ...
 Differentiate your product Make a new product if necessary Turn old products into new productsDon’t Sell a Commodity
   If you don‟t have a product so expensive    no one has ever bought it, you are leaving    money on the table.Sell Some...
 Control Pricing Control Access Control MarginGo Direct
 Offer old sales terms to new customers Bundle poor sellers Give away product instead of moneyPick Up the Crumbs
 A „best price‟ should be Customers have perfect informationRespect Your Customers
Launch Product            Take Orders          - Cover Costs -          Start Production          Ship and ChargeProcess
Dollars          0%   20%   40%   60%   80%   100%Gathering Interest
Dollars          0%   20%   40%   60%   80%   100%Gathering Interest
Dollars          0%   20%   40%   60%   80%   100%Under Development
Shipped    Email                ProductionReference Book
Shipped          Email                        ProductionCoffee Table Book
Buy Now!Benefits
An OldBusinessModel
1,000 x $10 = $10,000        250 x $40 = $10,000       100 x $100 = $10,000      10 x $1,000 = $10,000Community Pricing
$140,000                     Highest                             Revenue$120,000$100,000 $80,000                Best Price...
 http://logos.com/prepub http://logos.com/communitypricing   Bob Pritchett    bob@logos.comLinks & Contact
Upcoming SlideShare
Loading in …5
×

Digital pricing strategies

3,950 views

Published on

Slides for the O'Reilly webcast (http://www.oreillynet.com/pub/e/2359).

Published in: Business, Technology, Spiritual
  • Be the first to comment

Digital pricing strategies

  1. 1. Digital Pricing Strategies & Lessons Learned Bob Pritchett Logos Bible Software
  2. 2. Income > ExpensesSecret of Profitability
  3. 3.  The best price makes a profit and brings the customer back. The value should be real, and you should be proud of it. Don‟t devalue your product.Deliver Real Value
  4. 4.  Different messages: ◦ Limited Time ◦ Exclusive ◦ Best Price ◦ Auction Different channels: ◦ Academic Discount ◦ Twitter / Facebook Specials ◦ Email ListsMultiple Pricing Options
  5. 5.  Have multiple price points ◦ Users know which bear they are  Let people choose a size ◦ Always have a way for a user to spend more  At each size, offer add-ons Ask “Do you want fries with that?”Allow Users to Self Select
  6. 6.  Good for the user (better value) Good for the vendor (fewer transactions) Spreads costs of narrow products Monetizes low-volume productsBundle
  7. 7.  Differentiate your product Make a new product if necessary Turn old products into new productsDon’t Sell a Commodity
  8. 8.  If you don‟t have a product so expensive no one has ever bought it, you are leaving money on the table.Sell Something No One Buys
  9. 9.  Control Pricing Control Access Control MarginGo Direct
  10. 10.  Offer old sales terms to new customers Bundle poor sellers Give away product instead of moneyPick Up the Crumbs
  11. 11.  A „best price‟ should be Customers have perfect informationRespect Your Customers
  12. 12. Launch Product Take Orders - Cover Costs - Start Production Ship and ChargeProcess
  13. 13. Dollars 0% 20% 40% 60% 80% 100%Gathering Interest
  14. 14. Dollars 0% 20% 40% 60% 80% 100%Gathering Interest
  15. 15. Dollars 0% 20% 40% 60% 80% 100%Under Development
  16. 16. Shipped Email ProductionReference Book
  17. 17. Shipped Email ProductionCoffee Table Book
  18. 18. Buy Now!Benefits
  19. 19. An OldBusinessModel
  20. 20. 1,000 x $10 = $10,000 250 x $40 = $10,000 100 x $100 = $10,000 10 x $1,000 = $10,000Community Pricing
  21. 21. $140,000 Highest Revenue$120,000$100,000 $80,000 Best Price $60,000 $40,000 No Cost Recovery $20,000 $-Community Pricing
  22. 22.  http://logos.com/prepub http://logos.com/communitypricing Bob Pritchett bob@logos.comLinks & Contact

×