The Problem

Choices are an integral part of effective pricing strategies. They help the customer understand the link between price and value, and even facilitate decision-making. But poorly constructed product versions — often the “good, better, best” systems designed in the absence of a concrete rationale — can be as much a hindrance as a help. If you version on the wrong dimensions, set the wrong levels or otherwise provide the wrong options, customers won’t buy what you were expecting and your average price level will drop.

 

The Solution

  • Competitor versioning approaches
  • Versioning system options
  • Evaluation criteria
  • Versioning system scoring
  • Conjoint analysis
  • Version design

 

With this phase completed, it is time to move on to Phase 8: Price Metrics and Fences.