Impact Pricing21 Feb 2024

Pricing Table Topics: 9 of Diamonds – Subscription Is a Business Model

This one is the 9 of Diamonds from the Impact Pricing card deck.

When we think about subscriptions, and I've talked to several companies who are trying to move from more of a transactional business to a subscription business, they think it's 'just pricing'. "Oh, we want to set our price this way." But it turns out it changes so much in your business, not just the way you set pricing.

One of my favorite things about the subscription business model is that buyers pay us for a continuous stream of benefits, meaning we're delivering benefits month after month after month. The question in your business is, are you truly delivering benefits month after month after month? In which case, maybe you have a good business for starting a subscription business model.

Then we want to think about, not only how are we delivering it, but then, how much value do they get each month? How do we start to capture that? And so, we can certainly price it, but we really need to structure our company around winning these customers.

And then we have to figure out, how do we keep them? How do we minimize churn? And over time, we figure out how to grow these customers. How to get them to upgrade or buy more from us? So, subscription isn't as simple as, 'let's change the way we do pricing'. It really is an entire business model.

We hope you enjoyed this example of Pricing Table Topics. What you just heard was done without a script.

If you have any questions or feedback, please email me, mark@impactpricing.com.

Now, go make an impact.

Connect with Mark Stiving:

Email: mark@impactpricing.com
LinkedIn: https://www.linkedin.com/in/stiving/

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