THE VALUE & PRICING BLOG
The latest stories, blog articles, and pricing news from the Ibbaka team
Why are AI applications priced conventionally?
Last fall Ibbaka research found that the most common pricing metric for AI applications was per user. This was confirmed in a recent survey by Kyle Poyar and Palle Broe for Growth Unhinged. What are the reasons for this?
Should a buyer care how a product is priced?
There are many different ways to come up with packaging and price: cost plus, competitive, willingness to pay, value based. Each motivates different decisions by the vendor. Over time, they will deliver different outcomes for the buyer. How a product gets priced is more important over the long term than the price.
The future of pricing - results from a quick poll
There is a lot of noise in the pricing world about how pricing will evolve over the coming years. Some say dynamic pricing will dominate. Others remain focussed on value-based pricing. There is more and more discussion of outcomes or results based pricing. Other people have already begun to speculate about machine-to-machine pricing. People in the Professional Pricing Society’s LinkedIn Group and in the Coalition for the Advancement of Pricing have shared their thoughts. We summarize these here and provide some additional structure.
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