Marco Bertini and Oded Koenigsberg examine the future of pricing and how value translates directly to profits. They urge you to understand that people aren’t buying your widget; they’re buying what your widget does for them. Customers want an easy-access product that smoothly performs its intended function. People will pay for the results they want, leading to new pricing models based on per-use rates. Identify what you sell – as the authors say, not the car, but the transportation – and then figure out what to charge for it.
About the Authors
Professor Marco Bertini is a visiting marketing professor at Harvard Business School and senior advisor to the marketing, sales and pricing practice of the Boston Consulting Group. Oded Koenigsberg is professor of marketing and deputy dean at the London Business School.