Telecom Pricing Strategy Consulting

Do You Need to Change Prices? Between new tariffs and technology, The pressure to maintain profitability is Making you question your costs and prices At a faster rate than you have changed in past. Make sure you don't overlook this key Economic concept and the related demand Analysis unless you like taking unnecessary risks. While demand predictions and forecasting fall Primarily into Marketing and Operations buckets, Demand is the main driver of your company revenue And has significant impacts on your business structure. Thus, demand analysis in the context of price changes Is not merely a function of estimating quantity sold. One should distinctly consider the price elasticity And account for dynamic market conditions. It is a relatively simple calculation and can be Even done on the back of an envelope, or by Using simple regression modeling or AI tools. If your product falls in the inelastic good category: --> Price increases might not lower your revenues. --> Customers heavily depend on your product. --> Unreasonable prices can cost you goodwill. --> Good pricing strategy can stand you apart. If your product falls in the elastic good category: --> You have many more competitors in the market. --> Even small price increases can lower revenues. --> Pricing has to fall within market parameters. --> Don't use a suboptimal pricing strategy. Actionable Insights: 1. Evaluate past price changes and revenue impacts. 2. Investigate what your competitors are doing. 3. Customize your approach to your pricing. 4. Include various teams in this decision. 5. Don't panic-price your products. Follow Dr. Kruti Lehenbauer & Analytics TX, LLC for #Postitstatistics #Economics #DataScience #AI tips P.S.: Are you looking to adjust your prices?

At $10M+ ARR, You are losing money. Not because of bad product, But because of bad pricing. Why pricing? → Competitor pricing weakens positioning → Pricing doesn’t match customer value → Customers stay on the cheapest plan → No upsells, no expansion revenue → Too few users on annual plans → Enterprise deals lack flexibility → Pricing is never tested Lack of pricing strategy directly affects your revenue. Here are 7 steps to fix it. 1. Audit pricing by revenue segment → Where is pricing suppressing upgrades? 2. Reposition pricing against competitors → Own a category, not just a price point. 3. Expand revenue streams → Upsells, add-ons, usage-based models for high-value users. 4. Charge based on value, not just cost → Align pricing with impact and willingness to pay. 5. Move customers to annual → Build ACV and retention with incentive-based annual pricing. 6. Enable enterprise flexibility → Custom contracts, volume discounts, and deal-based pricing. 7. A/B test pricing regularly → At this scale, small price shifts = millions in ARR gains. At $10M+, pricing isn’t just a strategy, it’s a competitive advantage. P.S. How often are you testing your pricing strategy? ♻️ If you find value, let others benefit too. __________________________________________ Ready for more SaaS pricing insights? Follow me, Marcos Rivera🔔

Over the past year, our pricing reviews have revealed important insights. We often see issues that uncover a misunderstanding of willingness to pay. And pricing strategies that deliver underwhelming outcomes, from poor revenue growth, to loss of market share and increased customer churn. Here are a few signs that indicate we should review our packaging and pricing approach: 1. Customers and the sales team find it hard to explain the benefits of the different pricing tiers and packages. 2. Low upsell and cross-sell rates. 3. High customer churn, particularly during renewal season. 4. Prevalence of unstructured discounting. 5. All customer segments paying the same price. These issues often stem from a fundamental misunderstanding of customers' willingness to pay. This is especially true for different types of customers. This is where building a solid fact-base is critical. Software companies can analyse their CRM, transaction data, and usage data without difficulty. However, they often struggle to grasp customer sentiments. They don't understand how much customers are ready to spend on their current or future products. To understand what customers think, start by interviewing experts, competitors, and customers. Surveys are also crucial to help you see how they buy. You will discover their key decision factors, preferences, and what they will pay for various packages. Once you've gathered the data, it is important to analyse it effectively. This will help you understand the nuances and make more effective decisions. At L.E.K. Consulting, we use a range of techniques to understand willingness to pay. They include Gabor Granger, Conjoint analysis and Van Westerndorp analysis. But we'll save those for another time. Prioritising a strong fact base around the voice of the customer is essential to staying competitive in the market. Then, use this information to gauge willingness to pay. It will help you create better packages and set future prices and discounts.