Ignite Tech Sales with Strategic Pricing for Your Startup

Hi!

Welcome to Sparksense's Newsletter! Every month, I personally bring you insights to fuel your sales strategies, drive business growth, and succeed on your entrepreneurial journey. My focus is clear: to equip you with actionable takeaways. Anticipate valuable advice on prospecting, smart selling, and sealing deals that matter for Deep Tech Entrepreneurs!

This month, with Black Friday coming up, let’s dive into the topic of pricing.

Perhaps the reason price is all your customers care about is because you haven’t given them anything else to care about. - Seth Godin best selling author and marketing guru [All Marketers Are Liars, 2005].

How to avoid common pricing pitfalls?

Value-based pricing is the name of the game. You've invested time, effort, and resources in your groundbreaking product. Now, the challenge is pricing it right. This is a crucial step, often missed by startups, leading to a lower sales potential.

1?? Don't Undercut Your Value: Offering the lowest price isn't the key to success; providing the right value is particularly important for breakthrough technologies.

2?? Beware the Pricing Trends: Don't blindly follow pricing trends; align with your unique customer group's preferences.

3?? Value, Not Just a Free Trial: Offering something free? will not show true customer value or readiness to pay.

4?? Steer Clear of Consulting Overload: Pre and post-sales consulting might pay the bills, but they're not scalable and divert resources from more scalable product development.

So, there are two very useful pointers about price here: Go late – mention price after it's clear what the customer wants and the value it’ll give them; and Go valuable – make sure your price is small compared to the value they’re getting - Andy Bounds

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Apply these 4 steps towards a winning Pricing Model

When pricing your product, it's crucial to establish a competitive price point through thorough competitor research, production cost analysis, and emphasising your product's unique value to justify the cost.?

1?? Structure your Offering:

• Create a compelling mix of products, services, features, and options.
• Ensure the offering meets customer demands effectively.

2?? Shape the right Price Structure:

• Define a clear reference point for pricing.
• Differentiate your offering to emphasise its unique value.
• Group related products or services for a single price.
• Offer individual components separately.
• Establish favourable payment terms.

3?? Define your Price Point:

• Set the specific price for your product or service.
• Assess competitors' pricing.
• Set prices based on perceived customer value.
• Determine prices based on production costs.
• Adjust prices for different distribution channels.

4?? Execute a strong Price Lever:

• Create a price anchor for comparison.
• Implement good-best-better pricing.
• Offer rebates as incentives.
• Apply transaction pricing for specific deals or situations.

Avoid common pitfalls by focusing on value, not just the lowest price, and aligning with your unique customer base. Ultimately, your pricing strategy is about understanding what your customers truly value. Revamp your pricing strategy with Sparksense - talk to us.

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How Romb Technologies Leveraged Value-Based Pricing to Navigate Success?

Romb Technologies, an academic spin-off, has steered its way to success in the realm of autonomous navigation technologies, focusing on applications that demand precision and reliability in fields like logistics and manufacturing.

Here's how they harnessed value-based pricing for their unique technology-driven solution:

• Understand Customer Needs: they recognized the importance of understanding their customer's existing processes and solutions. They create pricing strategies that align with customer segments with specific requirements.
• Expand Market Boundaries: by adopting a value-based pricing approach, Romb Technologies positioned themselves to generate sustainable business value beyond their current market boundaries.?
• Immediate Impact on Success: acknowledging the direct and immediate impact of pricing on their bottom line and overall success. Their pricing strategy is not just about numbers; it's a fundamental driver of their business growth.
• Tailor the Pricing Framework: capture all relevant products and services, including training, installation, and customer support. This framework helps determine what to bill, what to offer for free, and how to shape their product offering.

Value-based pricing has become a cornerstone of Romb Technologies' strategy, allowing them to capture the maximum value from their innovative navigation solutions.

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Can Stripe Transform Your Startup's Pricing Strategy?

The unequivocal answer is yes. Stripe serves as the ultimate instrument to streamline financial processes, allowing you to supercharge your revenue growth through its innovative pricing structure, subscription management, and upfront payment solutions, all for free.

??Seamless Payouts: Automate your financial processes with Stripe, making it easy to send payouts to vendors, suppliers, and partners.

??Online Sales Optimization: If your business thrives on online sales, Stripe Payments is your ideal companion. It's packed with features designed to enhance your online sales operations.

??Revenue Growth: By simplifying the payment process and automating financial tasks, Stripe is a powerful ally in your quest to boost revenue and extend your financial runway.

Stripe not only simplifies payment processing but also allows you to optimise pricing, thereby increasing your revenue. Check out our other 4 top free tools that we use every day.

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Tap into new opportunities in Underground Testing

Are you feeling like you're not getting the traction you need to grow your business? Or maybe you are having trouble competing with larger competitors? That’s why we work with entrepreneurs to find hidden champions or second tier players who offer untapped potential.

Company: Hagerbach Founded: 1970

HQ: Flums Hochwiese, Switzerland Employees: <100 Locations: 4

An underground facility, providing tunnels, caverns, labs, and more for research, testing, and events, attracting specialists from around the world and contributing to cutting-edge advancements in mining and tunnelling.

Potential? 5.5 km long infrastructure network with various rock formations, surfaces, installations and different aspects of building, optimal to test, study, exercise and present under full-scale real conditions.

Tech Stacks? tunnel monitoring, geological exploration tools, automation and robotics, fire testing technology, data analytics and simulation, mining software, environmental monitoring, geotechnical research and analysis tools, virtual reality and simulation

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Ignite Your Network: Let’s meet at Upcoming Industry Gatherings

In the dynamic world of B2B tech entrepreneurship, being in the know is your ticket to success. The question is, will we have the pleasure of meeting you at these transformative gatherings?

??Swiss Robotics Day 2023

Sparksense will host a 1-hr workshop at the Swiss Robotics Day (SRD) on Business Development for Entrepreneurs in robotics for industry & research with technologies for robots, logistics, aerial robotics and healthcare. Register now?to join us on Nov. 3 in Zurich!

??Sparksense Team reunion

Just last week we met at Sparksense IGNITE Barcelona which took place on October 26th & 27th! It was a mix of work and play, with some serious brainstorming and a bit of Tapas-eating competition thrown in. If you missed it check it out here!

??PIC Europe Summit

Let’s talk at Europe's most influential event in the photonic chip industry. Over 400 visitors from more than 20 countries. - Eindhoven, November 7 & 8!

??Formnext

Looking forward to novel solutions across the entire process chain of Additive Manufacturing and industrial 3D Printing. From software, technology and materials for all processes, AM production to post-processing and automation in the manufacturing process. Let’s meet Frankfurt, Nov 8 & 9.

??Productonica & Semicon

Let’s meet at the cross roads of electronics, photonics, semiconductors and manufacturing in Munich November 14th - 16th. Looking forward to exciting technologies around semiconductors, laser, on-chip design and Integrated circuits

Mark your calendar and let's connect at these game-changing events! If you are thinking of going - contact us here or email me directly!

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Talk to us to create a winning Pricing Model – No Strings Attached!

Do you want to refine your pricing strategy? Our team of business development advisors, equipped with technical expertise, is here to help you navigate the path to success. At Sparksense, we execute a robust sales process designed to deliver tangible results and tailor solutions to your unique needs. Our approach shortens your sales cycle, increases conversion rates, and ultimately accelerates your sales.?

To kick-start your journey, we're offering a free follow-up call to find out how we can help take your business to the next level. Sign up today and let's talk!

Thank you for reading! If you have any questions please feel free to email me directly.

Sincerely,

Hervé Flutto,

CEO and Founder of Sparksense

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About Sparksense

With 150 global clients supported over the last 6 years, Sparksense is the trusted Sales Team for B2B Tech Startups. With a smarter outreach, Sparksense’s team of over 25 advisors has ignited sales for hardware and software solutions across Europe, North America and Asia – thanks to its robust, proven business development skills and relevant market access to decision makers across key industries.