From the course: Pricing Strategy: Value-Based Pricing
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Move from free to fee
From the course: Pricing Strategy: Value-Based Pricing
Move from free to fee
- Many firms seek to grow beyond the traditional product core, by venturing into new services and solutions. Yet, they often overlook opportunities to capture more value from services they already provide. In other words, how can we move a service from free to fee? Based on our research with over 20 companies, we identified the following three steps to make this happen. First, you need to create a list of all services that you provide for free. Sometimes these are things like training, or delivery, or phone support. In one workshop for a B2B company, the sales force came up with 72 different free services. They only expected to find five to 10 when they started this exercise. Second, some services should move from free to fee. We call these services gold nuggets, which we'll cover in a bit. Third, you need to implement your price change by overcoming the fear and resistance of the sales force. Interestingly enough, our research shows that it's often easier to convince the customers to…
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