I've recently had some interesting conversations with CEO's and VCs about pricing of demand generation solutions. There was general consensious around value pricing - charging a fair price for the value that a solution brings to a customer. Where our thoughts diverged was around theoretical value to actual value attained and barriers to actual value created. In other words, customers must be able to implement and use an application to its fullest to actually extract value - otherwise the value is purely theoretical. If you implement software, hardware or any other appliance for that matter and fail to use it, then its value is zero.
Its been interesting to see this pricing strategy play out in the demand generation space over the past five years. There are solutions in the space that promise to deliver value to organizqations. But when the time comes to deliver value, implementation and usability prove difficult, therefore reducing value to nil. Our strategy has been to deliver attainable value through a balandce of power and usability. What is your pricing strategy? Should you price on theoretical value or actual value?