Exercise: Determining Willingness to Pay for {Business}

• Intro & Demo
• Value Prop
  • Relative Value
  • Pricing Metric
• Pricing & Packaging Schema
• Willingness to Pay
• Factors Influencing WTP
• Any additional feedback

Step 1: Introduction & Product Presentation

• Brief introduction of {Product} and its key features and benefits.
  • {Business/Product} is the only {X Service} that provides {Y value}. With {Business} , {user type/persona} can do {X, Y, Z}. It allows users to {X, Y, Z}.
• Highlight the unique value propositions that differentiate your product from competitors

{Diagram}

• Benefit A
• Benefit B
• Benefit C

Demo: {Link}

Step 2: Value Proposition Discussion

• Discussion about the value your product offers.

  • "What specific challenges or pain points do you think this product could address for you?"
  • "Are there any features or aspects of the product that stand out to you as particularly valuable?"
  • “How likely would you be to buy this product if it were fairly priced on a scale of 1-5?”
  • “How valuable do you think {Business} would be relative to:

  Category of tools	Tools	What I pay annually now	{Business’} relative value as a %

  • What would you assume to be {Business’} most intuitive price metric? In other words, which price metrics is most aligned with value to you, the customer?
    • Seats
    • API calls
    • Integrations
    • SKUs managed (e.g. Number of Plans or add-ons)
    • Customer count
    • Monthly Active Users
    • Number of Products
    • Number of entitlements
    • Number of features
    • Other

Step 3: Price Point Preferences

• Here is an initial packaging/pricing scheme with multiple tiers for {Business} .
  • What are your reactions?
  • Please rank these pricing tiers in order of preference from most preferred to least preferred and explain their reasoning.