Pricing and Planning for 2024
Steven Forth is CEO of Ibbaka. See his Skill Profile on Ibbaka Talio.
Pricing is a key input to any business and should be part of the business planning process.
The pricing planning process should have four key steps.
Establish a baseline for pricing impact, discounting, net revenue retention and other key pricing KPIs (Key Performance Indicators)
Align pricing goals with business an product goals
Plan pricing actions
Explore scenarios
Download Ibbaka’s Pricing Planning Guide & Checklist for 2024
Here are some key posts on this that we have shared recently.
Pricing and Planning: Preparing for 2024
Pricing needs to be at the center of business planning. It’s where all of the key parts of a business come together and asking hard questions about pricing should be central to business planning for 2024.
Pricing and Planning: Establishing a Baseline
The first step in planning pricing for 2024 is to establish a baseline. A baseline is not a static number. It represents a trend. Do you want to maintain that trend in 2024 or change it? The trends you care about are both internal and external.
Pricing and Planning: Strategic Alignment
The second step in planning pricing for 2024 is to align pricing with strategy. Pricing needs to support key performance indicators (KPI) and a direct connection should be established. Pricing should also take into account the growth motion and packaging pattern. Choice of a pricing method should also take place. Some companies are making ESG part of their pricing goals.
Pricing and Planning: Explore Pricing Actions
The third and final step in planning pricing for 2024 is to explore the actions you could take in 2024 and build a pricing action playbook. This will allow you to move quickly as you execute on How to Win decisions. Speed is life.
Pricing and Planning: Should You Increase Prices?
One of the most common questions that people ask Ibbaka is whether they should raise prices. B2B SaaS companies need to be careful about how they answer this question. The impact on Net Revenue Retention and usage needs to be considered.
Ibbaka Masterclass with Peakspan: Impacting 2024 Growth Through Pricing & Packaging
Many of you are in the middle or close to finalizing 2024 planning. It’s an exciting and reflective time of the year as you cast renewed goals for success in the new year and think critically about what worked, what didn’t, and where you see opportunity matrixed across perceived impact and difficulty to execute. In this session, Steven and Karen will spend an hour deep-diving into how intelligent pricing & packaging can drive a massive impact on your 2024 goals (some expected and others not!) and, importantly, offer an operating framework that you can apply to your business to understand better (and execute) those initiatives.
A few discrete topics that Steven & Karen will cover include:
How to establish your 2023 baseline
Setting your 2024 goals and role of pricing
Considerations for a price increase
Add a pricing metric
Repackage to address more of the market
Leverage value in your go-to-market