ABSTRACT
Except for highly competitive commodities, charging the same price on every transaction is rarely the best way to generate revenues. A far more profitable strategy requires creating a structure of prices that aligns with the differences in economic value and cost to serve across customers or applications. There are three ways to do this: Create different types of offers when value varies by services or features needed; adopt a value-based price metric when value varies by customer usage patterns; create price fences when value differs based on where, when or how the transaction occurs.