In a dynamic market, an annual pricing review is too slow and leaves money on the table. A product-led pricing committee should convene quarterly to evaluate market conditions, competitor moves, and customer value perception, enabling more agile adjustments.
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Treating pricing as a "set it and forget it" task is equivalent to ignoring user feedback on a core feature. It must be continuously monitored and iterated upon based on feature adoption, delivered value, and market changes, just like any other part of the product.
Founders often feel guilty about raising prices. Reframe this: sustainable profit margins are what allow your business to survive and continue serving customers. Without profitability, the business fails and everyone loses. It's a matter of ensuring longevity, not greed.
Product marketers often struggle to prove direct ROI. By influencing pricing strategy, they can make a tangible and measurable impact on revenue and ARR. Pricing is a form of value communication—a core PMM competency—making it a natural area for them to lead and demonstrate their contribution to the bottom line.
A major organizational red flag is when the people who decide on pricing are different from those who decide feature priorities. This disconnect indicates a broken strategy loop where value creation and value capture are managed in separate, unaligned silos.
Avoid overly detailed, multi-year roadmaps. Instead, define broad strategic 'horizons.' The shift from one horizon to the next isn't time-based but is triggered by achieving specific metrics like ARR or customer count. This allows for an agile response to market opportunities while maintaining strategic focus.
A blanket price increase is a mistake. Instead, segment your customers. For those deriving high value, use the increase as a trigger for an upsell conversation to a better product. For price-sensitive customers, consider deferring the hike while you work to better demonstrate your value.
An ROI case isn't a one-time sales pitch; it's an ongoing conversation. Implement periodic 'value audits' to formally demonstrate the value your product has created. This builds internal evangelists and gives you tremendous power in future renewal or price increase discussions.
Many businesses over-index on marketing to drive growth. However, strategic price increases and achieving operational excellence (improving conversion rates, average tickets) are equally powerful, and often overlooked, levers for increasing revenue.
Instead of setting prices at launch and letting them erode, Novonesis implemented a discipline of having annual conversations about the value their products deliver. This shifted pricing from a 1-2% annual erosion to a 1-2% revenue growth contributor.
Before attempting to influence pricing, product managers must first document the existing process: who conducts research, who creates the model, and who holds final authority. This map reveals the true power structure and identifies concrete opportunities for engagement.