Pricing management: how to change approaches in the face of falling sales

You have a product that is sold on a subscription basis. How do you set the rate schedule for it? Perhaps you determine your costs and add a small profit on top. Another way is to compare competitors’ rates and offer something similar. And someone simply acts on intuition.

All of these approaches have the right to exist, but they all sin one thing: you lose money.

The most profitable pricing strategies focus on customer value. They don’t arise out of thin air, but are based on real data and determined by customer/user habits.

How do you maximize monetization and retention rates while still generating consistent revenue? Here’s a look at why the subscription business is so difficult to run, outline a few common pricing strategies and models, and learn why value-based pricing should be the only viable choice.

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