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.
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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.
To convince a CEO of a brand's value, ask one simple question: 'Do we have pricing power?' This metric—the ability to raise prices at or above inflation without losing demand—cuts through marketing jargon. It is the most direct, tangible indicator of brand health that resonates with finance-focused leadership.
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.
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.
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.
A cited 2016 study from "Monetizing Innovation" reveals a critical flaw in corporate strategy: 80% of companies determine pricing based on internal costs or competitor analysis, rather than investing in research to understand the actual value delivered to customers.
Discussing pricing early doesn't mean you're in the proposal stage. True proposal and negotiation begins only after you have secured explicit agreement on the problem, the solution, and from the key decision-maker. At this point, the deal would close if it were free; price is the only remaining variable.
Citing Marty Kagan, the podcast argues that when pricing decisions are reserved for executives or finance, it indicates the organization views product management as a delivery function, not a strategic one. This structure inevitably leads to a feature factory model.
Post-acquisition by a private equity firm, financial visibility for product and line managers is often deliberately reduced. Pricing decisions are centralized at the corporate level, removing autonomy and making it impossible for product managers to strategically influence this critical function.