Below are nine (9) quick reminders to encourage you to refresh your curiosity, interest and intent to the topics of "profit" and "pricing".
What if, during your next leadership or board meeting, you flipped your P&L and started with the following to better validate your "business model" and "business strategy".
Your Pricing Determines Your Profits
1. Return on Market Share
Careful how you approach gaining market share. You can drastically dilute the profit potential of your market.
2. Return on Ideas
Ideas that are not monetized (profitably) are called hobbies or charity. Some invest a lot of time and money into finding this out.
3. Evasive and Earned
Profit is both fragile and slippery. Profit is not loyal and will not be taken for granted.
4. Profit Requirements
You cannot calculate PROFIT without a PRICE.
5. The Metric of Metrics
PROFITABILITY measures every business decision you make.
6. Source of Sustainable Success
PROFITABLE companies (or profitable investors) are the only means for UNPROFITABLE companies to have a chance to be considered successful.
7. Profit Levers
Only Four (4) Options to Improve Profits ...
1) Reduce Fixed Costs
2) Reduce Variable Costs
3) Increase Sales
4) Increase Prices
8. Exit Levers
Unprofitable businesses, subsidized by investors, do not last unless they become profitable or acquirers believe you can contribute to their profitability. ** With many large corps not being able to generate profits on acquisitions that looked so promising, be careful if that is your exit strategy.
9. Source of All Profits
ALL the revenue and profits created ... past, present or future ... by every business or person ... is the result of pricing decisions.
Do not be merely curious or interested in profits ... achieving, growing and sustaining profits requires you be relentlessly intentional.
Follow-through ... you won't regret it.
Software Pricing Strategy
SaaS Pricing Models
Leverage real world experience, consulting with 1,000+ software solutions to better inform your pricing strategy and monetization decisions.
Internet of Things Pricing Strategy
IoT Pricing Models
As IoT continues to evolve, be sure your pricing and monetization decisions are not constraining your market growth or limiting speed of innovation.
API Pricing Strategy
API Pricing Models
Application Programming Interface pricing and monetization strategy that captures the full scope of the value your API has to offer the marketplace.
Technology Pricing Strategy
Hardware Product Pricing Models
Hardware pricing and monetization decisions are critical to achieve the best possible return on the upfront investments necessary for market success.