From Exceptional Utility to Getting Your Price Right

Revenue streams are a function of transactions. In most cases, more transactions lead to more revenue. Today, we are going to move from exceptional utility to getting your price right.

Getting your price right is a process in blue ocean thinking. We have discussed the sequences around product design in blue ocean terms. We have covered the importance of developing the AS-IS Strategy canvas and distinguishing your offering from that of your competition’s.
Review these topics if desired here.
Reconstructing Boundaries with the Six Paths Framework

Focus on the Big Picture and Not the Numbers

Finding Markets from Non Customers

Implementation of Blue Ocean Strategy

Most companies think that an analysis of competitor pricing is the determining factor in pricing their offering. They fall for the red ocean trap of simply lowering the price or adding perceived value and going to market. This is not proper thinking if you intend to capture mass markets of new customers and make it very difficult for your competitors to keep up with you.

The first requirement for strategic pricing is to determine what price will lead the masses to adopt your product or offering.

If you’re a service provider who never intends to scale your offering to a large market, this may not apply to you. However, I would encourage consideration of this kind of thinking.