PMM Hive Essentials
DIY Packaging and Pricing Guide
Tapping into monetization strategy as a lever for growth
All companies that sell a product or service must at some point make decisions about both their packaging—how they assemble their features, functionality and services into different editions that customers can purchase—and their pricing—what they actually charge customers for those different editions. Often, those decisions are made informally, based either on costs plus a desired markup or relative to perceived competitors’ pricing.
While both are common and easy to understand, putting the emphasis on price alone overlooks an area of focus that drives growth more effectively than customer acquisition or retention—monetization. Optimizing your monetization strategy takes into account both to whom you are selling and which combination of packaging model, pricing model, and finally, specific price points would be optimal.
Making the time to take a rigorous look at your monetization strategy, whether or not you are able to invest in outside help or know how to do it perfectly today, has the potential to both preempt pricey mistakes and give your company a competitive edge.
Building a rough value matrix that will provide directional clues as to which packaging strategy might be best for your situation.
For more information see DIY Packaging and Pricing Guide: Tapping into monetization strategy as a lever for growth.
Product Packaging and Pricing Value Matrix Template
Editable pdf document to help you get started on DIY product packaging and pricing. 1 page.