Monetizing Innovation: How Smart Companies Design the Product Around the Price
updated 9d ago
updated 9d ago
Product configuration and bundling is more science than art. You need to build them carefully and match them with your most meaningful segments.
Eli added 4mo ago
New products fail for many reasons. But the root of all innovation evil—what billionaire entrepreneur Elon Musk would call the set of “first principles”—is the failure to put the customer's willingness to pay for a new product at the very core of product design.
Eli added 4mo ago
Draft your business case using customer willingness-to-pay data, and establish links between price, value, volume, and cost. Without this, your business case will tell you only what you want to hear, which may be far afield from market realities.
Eli added 4mo ago
New products fail for many reasons. But the root of all innovation evil—what billionaire entrepreneur Elon Musk would call the set of “first principles”—is the failure to put the customer's willingness to pay for a new product at the very core of product design. Most companies postpone marketing and pricing decisions to the very end, when they've a
... See moreBlas Moros added 16d ago
The component company failed to ask this question: “What value does this component bring to our customer and its customers, and what portion of that value can we capture?” Instead, it asked, “What does this component cost to make, and what minimum margin do I need to add on top of that?”
Blas Moros added 16d ago
This book is about switching from hoping your innovations will find market success to knowing they will.
Blas Moros added 16d ago
To determine what features you should bake into which product configuration, you should start by separating the must-have features from the nice-to-haves. On their own, nice-to-haves won't convince customers to buy a product. It's equally important to think about which features might turn off customers. Critical features—what we call leaders—are wh
... See moreBlas Moros added 16d ago
So which goals are most important for your new products? Revenue? Market share? Total profit? Profit margin? Customer lifetime value? Average revenue per unit? Something else? Whichever goals you choose, you cannot maximize all of them at the same time. In setting goals, you must make trade-offs. Here's an example: Assume you could sell your produc
... See moreBlas Moros added 16d ago
Like a recipe for a great meal, a solid pricing strategy document must have the right ingredients. It must also have a process for adding those ingredients in the right sequence. Let's review the ingredients, or building blocks. Building Block #1: Set Clear Goals
Blas Moros added 16d ago