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Martin Reichenbach
Mail: martin.reichenbach@gmail.com
Phone: +49 176 / 8035 4738
02-Dec-14
martin.reichenbach@gmail.com
About Martin
beActive Mnchen, Founder www.beActive-karte.de
becoacht, CMO
Simon-Kucher, Senior Consultant www.simon-kucher.com
University of Munich, Computer Science Diploma
Various Agencies, Online- and Email-Marketing Manager
02-Dec-14
martin.reichenbach@gmail.com
What is pricing?
02-Dec-14
martin.reichenbach@gmail.com
( Price
Variable costs
As is
Volume
Ceteris paribus
worsening by
Fixed costs
New profit (change)
Volume
1m
2.5m (-17%)
Price
10
2m (-33%)
10%
Variable cost
Fixed cost
2m
Profit
3m
02-Dec-14
TAKE AWAY:
Price decrease have a
way more serious
impact than changes
on any other lever!
Current situation in
professional B2B
2.5m (-17%)
Explanation:
By worsening/increasing your
fixed cost by 10%, the profit
margin drops by 7%
2.8m (-7%)
martin.reichenbach@gmail.com
Goal: Increase
market reach:
Stronger
differentiation
Goal: Critical
mass: Simple
proposition,
aggressive price
Time
02-Dec-14
martin.reichenbach@gmail.com
-5-
Example
User Value
Product Complexity
End User
buys
Subscription model
Freemium: LinkedIn
Limited Free Trial: Netflix
Simple to Complex
Yes or No
One-off monetization
One-off-monetization:
iTunes
Immediate
Simple
Yes
One-off monetization
Money-Back-Guarantee:
SEOmoz
Immediate
Complex
Yes
Simple
No
Complex
Yes or No
Simple to Complex
Yes
Immediate
Simple
Yes
Automotive, Enterprise
Software
Complex
Yes
02-Dec-14
martin.reichenbach@gmail.com
02-Dec-14
martin.reichenbach@gmail.com
Later stage
martin.reichenbach@gmail.com
Further reading
http://leanstartup.pbworks.com/w/page/15765232/Examples%20of%20Pricing%20Pages
http://www.startupdonut.co.uk/startup/financing-a-business/pricing/price-your-product-or-service
02-Dec-14
martin.reichenbach@gmail.com