When we think about pricing, typically we have a product in hand and we say, how much does our customer value this? How much are they willing to pay? Now, we’re going to put a price tag on that.
And that’s really important. We want to be able to do that well. And that’s typically what we think of when we think of pricing.
But if we take a step or two backwards in the business process, the fact that we as pricing people understand value, we understand how customers perceive value. Imagine if the product managers or developers or whoever’s defining the products that we’re going to build, imagine if they understood this concept of value the way we understand the concept of value. Because then they could be creating products that our customers actually value.
“The less obvious but more powerful part of pricing is creating value.”
– Mark Stiving
If we think about the products or the features that we create and how they drive value, we’ll end up creating better products, products that our customers love more, products that we can charge more for.
So, yes, product management, the creating value part, is huge.
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