Even with original products that have value, you will almost certainly have competition in the market. Less concerned with your customers than it is with the competitiveness of your product in the market. Involves your whole approach to pricing across your company but with a specific emphasis on how your pricing relates to the features of your product being made available and how it affects customer use of your product. However, a pricing strategy is not the same as a pricing structure. You might expect to see written below a whole host of pricing strategy buzzwords: penetration pricing, price skimming, product line pricing. Whether you’re attempting to break into a competitive field, hawking a high-value and very innovative product, catering to a broad array of buyer personas, or playing to a narrow field, adapt your pricing structure accordingly.

Change the objective, and you’ll have to change the structure, too. That equals big growth.Įvery pricing structure begins with a pricing objective. A company with a solid grasp of their buyer personas and the competitive value of their product charges a fair price.

Your pricing structure is powerfully influential over how your company is perceived from the outside and how fast it’s likely to grow. It fundamentally answers the question, “How much do I charge for my product?” by helping you figure out the relationship between the value of your product or service (and especially how your customers perceive that value) and the costs incurred to create and provide it. Your pricing structure defines your pricing setup for products or services, including your core price points plus discounts, offers, and strategy.

Dropbox pricing tiers