How can you use a product vision to set prices effectively?

A product vision serves as the guiding principle for setting prices effectively. By clearly defining the product vision, including its value proposition and unique selling points, businesses can align pricing strategies with the perceived value by customers. Understand how the product addresses customer needs and differentiates itself in the market. This insight enables the establishment of competitive yet profitable pricing that reflects the perceived value of the product, ensuring it resonates with the target audience and supports the overarching vision for the product's market positioning. Regularly reassess & adjust pricing in alignment with the evolving product vision & market dynamics to maintain competitiveness and value perception.

Leveraging a product vision personally guides my pricing strategy by aligning it with the perceived value and unique selling points envisioned for the product. This ensures that pricing reflects the product's market positioning, resonates with customers, and supports long-term business goals.

A product vision is a clear, overarching statement that describes the desired future state and purpose of a product. It encapsulates the goals, values, and direction of the product, providing guidance for the development team and stakeholders.

Dentro do Agronegócio, mais precisamente na pecuária, temos um desafio extra que particularmente é motivante. Pois o nosso cliente é o animal e ele n?o fala, ou seja, precisamos criar uma vis?o de produto que contribua para o animal mas ao mesmo tempo que seja inspiracional para o dono do animal. Ferramentas de ROI/Payback s?o muito bem vindas desde que estejam atreladas em embasamento científico no desenvolvimento das mesmas.

A product vision should be tailored to the emotional feeling or outcome your customer experiences using the product. Defining your vision from this viewpoint, it provides the necessary foundational elements for how you will price the product in the market.

For creating a product vision, firstly, the target group has to be identified. Thereafter the identified group needs should be understood and prioritised. This should be done in sync with the Product’s USP. Once the USP has been marked, it should always align with the customers’/target groups’ needs. The seamless integration of the the needs and USP is mandatory for meeting the business long term goals which defines the final step of creating the product’s vision. These 4 pillars are mandatory, if not the ultimate. Each and every statement put out in the market affects the product vision and therefore, should be cautiously used. Any grievances should be urgently addressed as if left unchecked, it leaves a negative impact on the vision.

Your product visions should be crafted to address a unique problem that currently needs to be addressed or offer a new way to address an existing problem in the market. Define who is experiencing this problem and what outcomes they should anticipate by solving this problem with your solution. Lastly, offer why you address the problem now (ROI).

To create a product vision: Understand your target market and their needs. Define the unique value proposition of your product. Envision the future state of your product and its impact on users. Ensure the vision aligns with the company's goals and values. Communicate the vision concisely, capturing its essence in a statement.

1. Understand your target audience 2. Their needs and wants 3. How does the product satisfy the needs and wants of customers? 4. What are point of similarities and differences with respect to the competition?

Aqui gostaria de contribuir recomendando uma ferramenta que tem me ajudado bastante em como criar uma vis?o de produto, o Fly Wheel.

A product vision can influence pricing by: Highlighting the value and unique selling proposition (USP) of the product, justifying a premium price if it aligns with the vision. Guiding pricing strategies based on the intended market positioning (e.g., luxury, affordability, innovation). Emphasizing the long-term value and benefits the product will provide to customers, influencing perceived value and price elasticity.

Begin by comprehending the complexity of audience needs and analyzing competitor prices along with their value propositions. Combining these insights with market trends can aid in setting prices. However, it is essential to incorporate financial techniques like target costing, taking into account competitor pricing as a reference point.

A product vision is similar to a company vision as it is the aspiration of what the product eventually wants to be.. Compare a bargain store v/s a luxury mall. Their individual product vision instantly clarifies their target segment - bargain hunters v/s luxury lifestyle seekers .. Similarly, their value proposition - one stop for best bargain deals and good quality v/s world’s best luxury brands in a one place. The pricing strategy too is clear The bargain hunters product formulated at least prices/ decent quality with wafer thin margins since as it’s a volume game The luxury seekers products formulated using the finest ingredients, technology, quality checks, packaging and distribution. Higher margins as smaller audience.

Setting your price based on future value is a function of execution and trust. Does your customer believe that you can deliver at the set point in time? If not, do they acknowledge that you're a trustworthy partner who can find workable solutions along the way? Let's be honest - execution is tough. That's why selling (or pricing) too heavily on roadmap is risky. Hard to execute, easy to erode trust. In B2B it's really trust that matters which flows to commercial arrangements like pricing. A decent rule to follow is to set your price for today's value + the next 4-6 months of run rate progress. If it's a huge value drop coming over that period, consider if it deserves a separate add-on price or bundle upgrade.

Tenets of your product vision should unpack your obsession with the problem and how you are uniquely positioned to solve it. It should also showcase when the vision comes to life, the outcomes your customers experience, both tangible and intangible. With this vernacular, you can begin to establish your pricing strategy.

Communicate your product vision and prices by: Crafting compelling messaging that aligns with the vision and justifies the pricing. Utilizing various marketing channels (website, social media, presentations, etc.) to convey the vision and pricing strategy clearly to your target audience. Using customer-centric language to illustrate how the product solves their problems or fulfills their needs.

In my experience, I have led and collaborated with teams to create a TTM (take-to-market playbook) / TTC (take-to-company playbook). The playbook provides the critical information internal and customer-facing teams need to know and the plays to execute in conjunction with the GTM teams. The playbooks are digital and updated frequently.

As regards storytelling, it's important to make your customers the focus, the center of attention, and the stars of the show. Ensure your customers understand that their pain points and needs were considered when making the products and fixing prices. It's only natural that customers support and trust brands that prioritize them in their messaging. Some marketers focus too much on the products and their capabilities. Even though the products have a functional use, it is important that you consider the customers' buying power, emotional influence, and values that drive their daily operations which includes purchase decisions. This is important because customers won't purchase a product if it contradicts their values, regardless of the price.

To effectively communicate your product vision and pricing within Salesforce, you can utilize the platform's features to engage with potential customers.

I have two general rules in pricing. The first is that your company is your price. The second is that your price is a mirror. #1. Do your customers think of you as expensive? A luxury? Are you trying to be the best-of-breed vs. a low-cost option? Well then everything around your product vision, customer support, and buying experience needs to match! It's the entire company. Price accordingly. #2. How do customers perceive you? Where do they stack rank you vs. the competition when you ask? Typically when customers frequently say you're a bargain it's easy to raise prices. Or if your win rate is dropping because customers feel you're "close enough" to alternatives it might be time to update the product vision or price tag.

To update your product vision and prices: Regularly assess market trends, customer feedback, and competition to ensure alignment with evolving needs and demands. Conduct market research to gauge the value perception of your product and adjust pricing accordingly. Review the product vision periodically, making adjustments if the market landscape or company objectives change significantly.

Don't fool yourself into believing that your product vision alone dictates prices! The perceived value by customers, shaped by both vision and quality, determines what they're willing to pay. One great example of using a product vision and quality to set prices effectively is the approach taken by the luxury watch brand Rolex. Instead of pricing its watches based solely on production costs, and market trends, Rolex emphasizes its product vision of exceptional craftsmanship, precision, quality, and status. This unique approach allows the brand to command premium prices and maintain a strong market position despite fluctuations in the economy.

Consider flipping the pyramid - start with positioning and how you want your customers to perceive the product or brand, and dictate the product vision accordingly. That way, you're able to command a price in the market by creating more perceived value! Perfect example is Apple. The brand positioned itself to cater to innovators, thinkers, dreamers and used technology to cater to that thought. It allowed them to create perceived value and align to how customers viewed themselves and a product vision came out of that. Now, it's the most valuable brand in the world.

O que gostaria de contribuir com minha experiência é, olhem o mercado que vocês v?o atuar. Na grande maioria dos casos esses mercados já existem, por mais disruptivo que seja seu produto, o mercado existe. Logo, há uma precifica??o prévia, uma média, o consumidor está disposto a pagar levando em considera??o essa média. N?o é o pre?o exato mas, se você fujir desse "meio" e caminhar em dire??o a um dos dois extremos de pre?o fatalmente estará fora da segmenta??o do mercado. Como resultado, ou você n?o terá margem ou n?o terá pre?o competitivo e em ambos os casos estará fora de mercado. Mais uma vez, olhem para o segmento que ir?o atuar.