Monetizing Innovation

But even if you have a quality problem, a price cut won't fix it. In fact, it could make matters worse for you

The key is to rigorously determine the market for a new product long before the products are built, and making sure the market is willing to pay for that product before embarking on a long journey of productizing the innovation

Peter Drucker once said: “Customers don't buy products. They buy the benefits that these products and their suppliers offer to them.

Porsche succeeded by designing the product around the price. This is what smart companies do

These firms must get comfortable with the idea of giving their low-price segment only basic quality and service levels, rather than giving them everything. In other words, product configuration requires the guts to take away features.

If your customers perceive your discount as signaling a lack of confidence in your product's value, they may not want to buy it at any price.