Slides Aditya Bhelande recently used in his discussion w/ mentees of The Product Mentor. The Product Mentor is a program designed to pair Product Mentors and Mentees from around the World, across all industries, from start-up to enterprise, guided by the fundamental goals…Better Decisions. Better Products. Better Product People. Throughout the program, each mentor leads a conversation in an area of their expertise that is live streamed and available to both mentee and the broader product community. http://TheProductMentor.com

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
Created by Yukta
• 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
Created by Yukta
• 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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