Waterstone views pricing strategy and execution as a highly actionable, near-term lever to help our clients achieve their revenue and profitability objectives. We employ a comprehensive approach to pricing which combines proven analytical frameworks with the unique market and competitive dynamics of our clients’ business environment. We have tested, refined, and successfully executed our approach across technology segments and stages of product lifecycles – from launching new offerings to optimizing existing portfolios. The key elements of our Pricing method consist of the following modules: 

Develop Strategic Context

Develop a common understanding of your strategic objectives and challenges, your offering portfolio and pricing models/price points, and any relevant or comparable pricing models in your market space

Conduct Market & Competitive “Deep Dives”

Conduct detailed market, customer, and competitor analysis (company, offering portfolio, pricing models, price benchmarking) to develop key perspectives around the evolving pricing dynamics impacting your market space

Analyze Financials and Offering Dynamics

Perform in-depth financial analysis (cross-BU and offering portfolio) to better understand your offering economics, cost drivers, and scalability

Gather and Analyze Customer Spend Dynamics

Gather and organize a broad sample of your customers’ spend data, compile dynamic spend database with robust query capability, and extract into segment-based spend models to drive further insight and scenario analysis

Create Pricing Constructs and Prioritize

Develop pricing model hypotheses, refine with feedback from Sales and Delivery teams, prioritize, and agree on pricing constructs to market test

Assess Financial Impact and Value Drivers

Develop financial models and conduct sensitivity analysis to assess pro forma economic impact of new pricing models on your overall company performance, product lines, customer segments, and individual deals

Conduct Market Testing

Select your target customer/prospect candidates and the testing mechanism, develop testing guidelines for control groups to gauge pricing effectiveness and receptivity, and execute market tests

Drive Operational Execution and Launch

Develop and socialize key GTM/launch assets with your sales teams (documented methods, quoting guidelines and FAQs, deal calculators, sales collateral, training)

Assess operational impact and develop implementation plan (policies and procedures, Quote-to-Cash process, existing Finance/Accounting systems, short-term transition mechanisms)

To learn more about how Waterstone’s can help navigate the pricing landscape, please contact us.