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Putting a Price on Solutions
Suppliers of solutions—integrated bundles of related products and services—often don't get the price premium they deserve. That's because setting the right price for a solution is no easy matter: price too high and customers will meet their own needs; price too low and suppliers won't get paid for the value they are delivering and the effort that went into it.
The take-away: To price solutions effectively, suppliers need to understand the economic underpinnings of their customers' businesses and the incremental benefit their solution offers compared to the next best alternative.
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