Research Report

Creating Tangible Value That Customers Are Willing to Pay For

This report is for XaaS Product Management members only

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Price is the economic number that is a fair exchange for the value provided by the supplier's solution. But how is tangible value created, how is that value calculated, and what influences the customers’ willingness to pay for the value? To address these questions, this paper provides a step-by-step process for establishing and governing pricing through the following topics:

  1. Tangible Value Framework
  2. Assessing Willingness to Pay
  3. Testing the Value Equation
The XaaS Monetization Series of papers includes:
  1. Common Pricing Pitfalls and How to Avoid Them
  2. The Pillars of Pricing Power
  3. Creating Tangible Value That Customers Are Willing to Pay For (this paper)
  4. Price Design
  5. Manage Your Pricing Roadmap

Authored By:

Laura Fay

Vice President, XaaS Product Management Research, TSIA

​Publish Date: September 28, 2019

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