Fantastic article. I always appreciate thoughtful historical context. Understanding the underlying economics is essential to understanding pricing strategy. Plus, as a value consultant myself I wholeheartedly agree with you points about aligning with customer value.
Outcome based pricing may be the next wave because not all usage creates value. A tighter alignment of usage and value will be the next breakthrough and make value-based pricing a reality for the majority of companies. Currently value-based pricing is not widely adopted.
Thanks for reading. I wonder if outcome based pricing will be looked at like usage based - whoah! That’s too much. Then we move to a hybrid sub + outcome
Just wrote a similar article focused on the evolution of software pricing and where we might be heading next - would love for you to have a read, give feedback, exchange some thoughts :)
Fantastic article. I always appreciate thoughtful historical context. Understanding the underlying economics is essential to understanding pricing strategy. Plus, as a value consultant myself I wholeheartedly agree with you points about aligning with customer value.
Outcome based pricing may be the next wave because not all usage creates value. A tighter alignment of usage and value will be the next breakthrough and make value-based pricing a reality for the majority of companies. Currently value-based pricing is not widely adopted.
Thanks for reading. I wonder if outcome based pricing will be looked at like usage based - whoah! That’s too much. Then we move to a hybrid sub + outcome
Super nice read as always, CJ! 🙌🏻
Just wrote a similar article focused on the evolution of software pricing and where we might be heading next - would love for you to have a read, give feedback, exchange some thoughts :)
-> https://open.substack.com/pub/todayihavelearned/p/til2-the-madness-of-software-pricing