Pricing of Digital Goods in Industry
Lever for Successful Expansion of the Product Portfolio
The industry is undergoing a profound transformation that companies must face by expanding their product portfolios. New digital goods such as software-based services offer the opportunity to complement the core business of physical products and create competitive advantages. With their help, customer needs can be met in better ways, and long-term customer relationships can be established. A prerequisite for the successful market launch of digital goods is to understand their special nature, which differs from physical products. This applies not only to the cost structure, but also to their value from the customer’s point of view, which is only experienced during their use. If these special characteristics are considered when designing pricing models, the customers’ willingness to pay can be skimmed off in the best possible way at any point in time. Based on the Horváth Pricing Excellence Framework and a practical case study, the white paper explains how to achieve this goal. With the help of the presented concepts, digital goods can be successfully introduced to the market, thereby securing the future competitiveness of the company.