Make sure you have an anchor product in your new product offering portfolio, and start every B2B sales negotiation for new products with a high anchor price.

Psychological price thresholds: Avoid falling off the price cliffs. You might wonder why you rarely see prices like $101 in retail; you almost always see $99 or $99.99. The reason is that customers typically have price thresholds in mind.

Pennies-a-day pricing: Reduce sticker shock and build loyalty.

The message here is clear: You need to create segments in order to design highly attractive products for each segment. And you must base your segmentation on customers' needs, value, and WTP. This way, segmentation becomes a driver of product design and development, not an afterthought.

The good news is only three types of pricing strategies matter: maximization, penetration, and skimming. Let's look at each. Maximization: This strategy maximizes your goal (such as profit or revenue) in the short term.

that is never properly brought to market, generally because it falls outside of the core business. Undead: an innovation that customers don't want but has nevertheless been brought to market, either because it was the wrong answer to the right question, or an answer to a question no one was asking.

Ideally, no more than a quarter of your customers should opt for the good option, while 70 percent should opt for the better or the best. Why does a well-crafted G/B/B configuration/bundle work? Because you can steer customers to a choice based on whether they are price conscious (good), quality conscious (best), or somewhere in between (better).

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

When most people hear the word “price,” they think of a number. That's a price point. When we use the term price, we are trying to get at something more fundamental. We want to understand the perceived value that the innovation holds for the customer. How much is the customer willing to pay for that value? What would the demand be? Seen in this