I monetize innovations… not because I am an accountant… but because I 1) ascertain what customers value and ascertain their willingness to pay, and 2) build cost structures congruent with demand-based pricing
Marketplace adoption of new innovations often fails because of timing, ineffective features, and pricing. Often, the pricing of new innovations is not aligned with consumers’ perceived value. Or, the costs to develop new innovations outstrip consumers’ willingness to pay. Thus, it is important to consider pricing power (the ability of your brand/company to command specific pricing for the value it delivers) and price elasticity (how consumer demand for a product changes when the product’s price changes) in the short and long term monetization strategy for new innovations.
Marrying behavioral (emotional and irrational based decision making) pricing elements with the rational aspects of consumers’ purchasing decisions is where many pricing strategies fall short. Another common short coming is basing pricing strategies on static business cases. While successful in gaining budget approval, these static business cases often fail to be living documents providing dynamic inputs from the market and enabling a brand/company to effectively react once a product is launched.
I have successfully managed recurring revenue businesses by increasing market adoption and reducing customer attrition. I am experienced developing promotional pricing, packaging product bundles, and adjusting for seasonality to manage revenue. I am also successful at managing volume and revenue generated expenses; as well as direct and allocated fixed expenses -- on a monthly, quarterly, and annual basis. I draw upon this strong P&L management experience to build dynamic business cases for new product introductions. More than a traditional “product evangelist,” I move beyond ideation to ensure new innovations have an identifiable market, can be developed cost effectively, will generate revenue, and will ultimately yield a profit.