Out of the digitalization, many new business models came up (e.g. digital marketplaces, platform models, digital ecosystems), additional sources of revenue (e.g. digital content, data, digital services) and innovative pricing models (e.g. outcome-based pricing, pay-per-use). This proves that digital transformation affects price management in many ways.Unfortunately, digital pricing is still often limited to topics like
automated price-setting (AI Pricing) or
pricing for online channels. Terms like
subscription economy pretend that there is one solution (subscription) that fits to all the challenges of all companies. But the new digital business world is different: Much more complex and much more differentiated than it has been 10 or even 5 years ago.
Nowadays enterprises should focus on first getting the pricing process right and then digitalize it. A good-working process like this is the backbone of price management:
Next to the Pricing process, the Integration of psychology aspects is mandatory. Apple is a good example here because they integrated the pricing psychology aspects since the beginning when they set the price for the first iPhone.
Watch this on-demand webinar to hear how other companies successfully manage their price management by following the basic rules of pricing. Learn more about:
- Why the price is the most powerful profit lever
- How to use the volume hurdle formula to support your price decision
- How to integrate price elasticity, margin and competition as a basic input for price optimization
- The 7 C of pricing
- How to integrate 8 pricing psychology aspects into the pricing process