Hiring software pricing experts is an essential step for any company that wants to undertake innovative and profitable software pricing. Since the process can be challenging, especially in cases where there is little data to work with, engaging a software pricing advisor can provide the leverage needed to make the right decisions. They will take a deep dive into your business, technology, and customer base, identify the pricing drivers to prioritize and help you create a pricing framework that aligns with your business and profitability objectives.

More specifically, hiring a software pricing advisor offers crucial insights and support in the following areas:

Opportunity Analysis

They conduct market opportunity analysis to identify pricing and positioning options a company can pursue. They also use interviews, surveys, and market data to generate insights around possible market entry opportunities. Using this data, they surface crucial insights around current competitors, pricing models, licensing lifecycles, and market trends. From this exercise, they map possible opportunities with company technology capabilities, outlining key factors that will determine the pricing direction the company can take.

Pricing Evaluation

Software pricing experts provide price evaluation support to companies with either existing products or who are launching new ones. They analyze how pricing maps onto demand and how this will impact revenues. They also look at what value the company’s offerings deliver and how this value is communicated to the customer. Since mismatches in value, demand, and messaging can lead to lower revenues, software pricing consultants help companies align these three factors for better bottom-line performance.

Monetization Strategy

They help companies maximize the returns from a product through a sound monetization strategy. They help companies look beyond simple pricing practices to consider other perspectives like freemium models, bundling, product tiering, IP protection, and upsells and cross-sells. Through an effective monetization strategy, they help companies unlock value that may not have been initially apparent and, in the process, future proof the company’s products against shifts in market dynamics and trends.

Impact Assessment

While software pricing experts play a crucial role in setting prices, they also play a similarly important role in determining how the prices will affect business performance. They do this by deploying pricing experiments, interviewing customers, and setting up surveys. Companies that hire software pricing consultants gain a better understanding of how pricing plays into their big-picture objectives and adjust accordingly. Effectively, software pricing consultants help companies avoid learning from mistakes, but rather help them learn from carefully set pricing impact assessment experiments and analytics.