The document outlines the goals and processes involved in product pricing analysis, emphasizing the importance of understanding the competitive landscape, customer value perception, and market dynamics. It details customer buying profiles, competitive pricing comparisons, and the risks associated with current pricing strategies. Additionally, it discusses other considerations such as product vision and profitability, ultimately aiming to identify optimal pricing scenarios.

1. Product Pricing
Case Study
By
Aditya Bhelande, Founder & CEO Yukta

2. Goals of Pricing Exercise
• Here are some of the goals to be achieved by performing Pricing analysis:
• Understand competitive landscape
• Pricing
• Features
• Customers
• Understand if there's any money left on the table
• If yes, then how much?
• What's the room for improvement
• Identify if there are any data collection issues required for changing pricing
• Understand if we are charging Customers in line with value we are providing
them
• Customer distribution by
• Geo,
• Vertical
• Product Feature usage, etc
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3. Product Pricing Process
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4. Product Buying Process / Experience
• High touch v/s low touch
• Commitment size (small v/s large)
• Commitment duration
• Engagement process (Website, email, phone calls, etc)
• Sales Cycle duration and introduction of payment conversation
in the process
• Purchase approval needs
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5. Prospect Profile
• Customer Buying Profiles:
• The Bargain Hunters - Price drive
• The Savvy Buyers – Focused on value generated from
functionality provided by the product / service
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6. • Competitive Comparison
• When and how do prospects compare price with the
competition?
• Does it happen only during the initial purchase or also during the
repeat purchase?
• Are there enough payment options compared to customer
offerings?
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Competitive Pricing Analysis

7. Competitive Pricing Analysis
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8. Competitive Pricing Analysis
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9. Competitive Pricing Analysis - Conclusions
• Feature parity as compared to the competition (Basic / Core &
Advanced)
• Typical product giveaway (baseline must have for free or at
minimal price)
• Solution completeness compared to the competition
• New competitor entrants rate
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• Presentation and positioning of pricing by the competition 9

10. Risks Associated with Current
Pricing
• Too much reliance on sales of certain product / product
module
• Too expensive compared to competition (especially when
customer needs are very basic)
• Pricing related issues with online transactions
• Revenue Generation by Geo
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• Cap on product purchase 10

11. Risks Associated with Current
Pricing
• Cap on product purchase
• Under valuing key features, especially differentiators
• Customer distribution by geographies & verticals
• Pricing model using attributes that are not directly related to
product usage
• Lack of data on product usage
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12. Other Product Pricing Considerations
• Product vision ad growth plan
• New market acquisition
• New product introduction
• Product profitability pressures
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13. Pricing Sweet Spot
• In which scenarios we most likely to win business?
• Niche
• Beachhead
• Customer referrals
• Low barrier to entry markets
• In which scenarios we most likely to loose business?
• Most profitable and least profitable scenarios
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