29 revenue model options for industrial enterprises (curated by @arnevbalen - board of innovation)

Revenue Model Options for Industrial Companies

curated by @arnevbalen

29boardofinnovation.com

http://www.twitter.com/arnevbalen

http://boardofinnovation.com

Download all files for free: www.boardofinnovation.com/FindNewRevenue

Rules of the game: • Start from a concrete idea • Continue until you are at a location where

you have been already (vicious cycle!) • Check all answers before choosing a path • Don’t judge yet, seriously!

Do you think your users could feel uncomfortable if all their

friends know that they use your product/service ?

Does your product/service remember previous use of a

user? (eg. memory card)

Can the user receive a higher status by using the product?

1. Early Exit

2.Tip jar/donation3. Barter

4. Freemium

6. Vanity/Reputation

7. Loss/Aversion

8. Privacy/Anonymity

9. Mystery/Surprises

16. Data Resell

20. Leasing 21. Pay-per-use

5. Pay-what-you-want

10. Convenience/ Shortcuts

11. Helping peers/ Gifts

12. Exclusivity/ Limited Availability

22. FractionalOwnership

Free!For the user.

Paid!The user = Client

Third partypays the bills

Monetization driver(How to cash in)

18. Flat rate (one-time-fee)

19. Subscription (time related)

13. Get one - Give one

14. Advertising

Do you want to offer a product/service to people

that can't afford it?

Would users value the possibility to share the product with their peers?

Would the status only be relevant amongst the user base of your product?

Hmmm...Making money on your product seems to be a tough one.

Get out of your comfort zone! It's innovate or die.

Answer quick! What comes to mind first is the right answer. Here we go:

Will the majority of users pay for your product?

Will users have to give their personal details in order to use

your product/service?

Is it your goal to have direct revenue from this

product/service?

Do you believe other companies would have interest in targeting

your user base?

Do you generate user-data relevant for others?

Are there any complementary services/products to your offer

that your users expect?

Is the variabel cost per extra user non-existent or negligible?

Can you think of features that only part of your user base would pay for?

Does your product need a critical amount of users to show it's value?

Do your users have non monetary resources the company (or other

users) normally would have to pay for?

Did you develop a feature/product significantly more convenient than

the best alternative users have?

What about offering a box without telling

what's inside?

#Awesome! You have some options that your users

might be willing to pay for.

23. Crowdfunding

Do you want the user to own the product once they pay?

Would you like proof of interest from your users

before you launch?

Do you think the user might have trouble paying the entire

product at once?

Do your users want to pay every time they use your product/service?

Yes!

Damn right about that!

We will launch anyway!

Yes!

Yes!

Will the user have the exclusive right to use

this product?

Not nessecarely!

Not really!

Nope!Yes!

No, let's give it for free!Yes!

Maybe

It's not about the ability to pay. I'm just not sure if everyone will pay!

In fact, yes!Not at all, they already use everything they have!

Exactly!

Check!

Ads, are you crazy?

Not really...

Shht... user data is our competitive

advantage!

No!

My product is all they need!

Yes!

It's not about the money!

Of course!

Definitely!

Nope, no critical mass needed!

That's why we make software!

Yes!

We do have some extra costs...

Afraid that you won't receive

enough donations?

Didn't I say I don't want them to pay?

No!

Of course! How can I let them pay otherwise?

Not relevant for my product!

Obviously...

Not relevant!

They would bedevastated if their user data

was lost!

Nope!Absolutely!

No! Amongst everyone!

Yes, they would love it!

No, it would lower the value!

No...

Hell yeah!

Not knowing what's coming is always kind of exciting!

Sounds like gambling!F*ck off!

That's how it works!

Nothing better than the smell of fresh money in the morning...

Close...but yet so far...

25. Razor-blade

Do you want more than one contact moment with your

user?

Not necessary!

Yes, that would be useful!

Seriously? We are not living in the

Middle Ages anymore!

Charity? No thanks!

Ever played Monopoly? Go back to start!

High chance that you'll find more reasons for

users to pay!

No!

Don't forgetto check this one as well!

Can one product be shared amongst

different users?Yes!

Could you introduce physical consumables to be used

together with the product?

Nope!

No!Goodidea!

Crowdfunding is only the beginning...

No, but we do have a recurring cost in mind!

Cool! You just teleported

yourself here!

Your journey requires a teleportation! Find

the exit...

24. Add-ons

Do you see the option to sell

something extra to part of your

customer base?

Harder, better, faster, stronger!

You can probably make even more

money on this! Just give it a try!

Remember:You can only walk this road once!

15. Affiliate/Referral

17. Matchmaking platform

Do you want to have an integrated solution that seems

to be your own offering?

Advice to trusted partner is fine!

Yes, IntegratedSolution

Do you dream of making even more

money with this idea?

Hint >You might find gold at the other side of this tunnel

You won't regret this!

High chance that you'll find more reasons for

users to pay!

Find new revenue models for your idea Start here!

What about these colours?

One Laptop Per Child

Always come togetherAlways come together

How to cash in on your new idea Team:

What would that mean !for your idea? !

Try to imagine…


Try to imagine…


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For example: 10. Convenience/ shortcuts


Try to imagine…


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Step 3: Brainstorm template

As an agency specialised in business model innovation, we support our clients to develop sustainable new revenue streams. By asking

the right questions, different options to monetise your idea arise. Unfortunately, we can’t be everywhere at the same time. That’s why

we've made a flowchart to help you and your team to discuss the alternative monetisation tactics & pricing options.

This flowchart will be most effective in one of the following cases: • You have a new idea and you are wondering if you can monetise it. • You already developed your business model and you would like to

challenge your current monetisation strategy.

Note: This is not a scientific tool. Don’t expect the ultimate solution.

Why did Board of Innovation make a tool to explore ways to find new revenues?

When should I use it?

Rules of the game: • Check cards to understand the

monetisation principle if you need some clarification or examples.

• It’s totally ok to peek into the revenue cards that you didn’t have as an outcome from the flowchart ;)

Rules of the game: • Take all outcomes into consideration • Translate the theoretical outcome

into concrete ways to earn money • Ask all team members to come up

with their own translation

Step 2: Revenue Cards

Step 1: Flowchart

http://www.boardofinnovation.com/FindMyRevenue

A technique used by drugs dealers for many years and also known as locking-in customers: give something for free (or cheap) and provide lots of hassle (€ or effort) when they want to change to a different service/solution. 2 Examples to turn theory into practice

Do we really have to explain this one? SAP has roots that reach to the deepest core of your organisation. Trying to kill this parasite will take your sweet, blood and tears (without any guarantee of success).

#1 Loss/Aversion Third Party pays the bill

Free! For the user.

Value Proposition

Pricing tactic

2. SAP

Dropbox is the most expensive player in the cloud storage market, but they were first and everyone integrated 3rd party services with their Dropbox account. Who knows what might stop working once you switch to an alternative?

1. Dropbox

How much value do you create?Where we would start our pricing strategy:

Costs related to risks of cutting loose the old solution + cost of training all employees to use it

Having something with a certain exclusivity is a show-off. It has always been like that and it will always be the case. The more people have access to the product, the harder it gets to use this as a value perceiver.

Highly intensive programs like the ‘innovation bootcamp’ and services such as ‘Hire a lean entrepreneur‘ require an extensive amount of time and effort from the (limited) corporate disruptors available in Board of Innovation’s team. ‘Be different and be first’ is our advice when you choose this path.

2 Examples to turn theory into practice

Most startup acquisitions are happening in a B2B context. The prime reason for a corporate giant to acquire a B2B startup is getting exclusive use of good people or products. Lots of B2B startups are built and launched to be acquired. (image: Monsanto buying Weather Corp. for $1.1B in 2013)

#2 Exclusivity/ Limited Availability Third Party

pays the bill

Free! For the user.

Value Proposition

Pricing tactic

1. Board of Innovation 2. Monsanto


Set a (very) high price and lower if you don’t get traction

View our Accelerator Program

Does your company need more internal startups?

Or mail us via [email protected]

http://www.boardofinnovation.com/corporate-innovation-accelerator-for-industrial-enterprises/

mailto:[email protected]

The acquisition of new customers is an expensive business associated to convincing a customer to buy your product/service. Ultimate convenience is achieved when customers are coming to you without active sales or marketing.

#3 Acquisition convenience Third Party

pays the bill

Free! For the user.

Value Proposition

Pricing tactic

Blood-testing startup Theranos operated for years in near-total secrecy, despite raising hundreds of millions of dollars at a valuation of around $9 billion. Their technology works but apparently 90% of all tests are outsourced to others. The industry perceived it as cheating but in our opinion it’s damn smart to outsource when you can not deliver (everything) yet.


Lafarge, world’s largest cement manufacturer, links retailers with micro-finance organisations so that the stores can offer loans and construction support to low-income consumers. Lafarge’s primary investment is in a team of home-improvement “counselors” who market the service through channels such as info kiosks set up in stores. Piloted in Indonesia and Nigeria.

1. Theranos 2. Lafarge retailer support


Saved cost per acquisition (google ads, working hours, etc.)

The better your product/service meets (and surpasses) the customer expectation, the happier the customer will be and the longer they will stay customer, resulting in less acquisition costs and higher revenues per customer.

#4 Client (of clients) satisfaction (retention) Third Party

pays the bill

Free! For the user.

Value Proposition

Pricing tactic

Small business owners are expected to excel at every role — salesperson, marketer, taskmaster, accountant, dispatcher, and receptionist. Breezeworks assists them so they can deliver better service to their customers. (eg. It keeps a clear overview of remarks from previous jobs.)


Joy Global Inc., a Fortune 1000 company, manufactures and services heavy machinery used in mining. The company also deals in aftermarket parts. By installing sensors in their machines they tell their clients when the machines need replacement parts or service. (Smart Services monitoring program)

1. Breezeworks 2. JoyGlobal


Average of extra jobs (retention) X cost of acquiring a new client

Employees can be seen as internal clients of a company. Keeping them happy is as important as selling good products/services to external customers. The better you treat them, the better for your clients’ business.

#5 Employee satisfaction Third Party

pays the bill

Free! For the user.

Value Proposition

Pricing tactic

Yambla is an ideation tool that helps discover and execute the best ideas in organisations. By endorsing the idea owners and empowering them with the right team members and tools creates a fun, simple and social culture that supports innovation.


Wranx provides employees quick, effective educational tools to become skilled in a number of areas. Employees can use this service wherever and whenever they want. Continuous learning does not require classrooms anymore. #awesome

1. Yambla 2. Wranx


Average cost of hiring per year divided by average turnover time of employees

Risk comes with a ‘risk minimisation cost’. Lowering the perception of risk is often enough to convince a company to buy your service. Go and find those risk factors ;).

#6 Certainty (aka. lower risk) Third Party

pays the bill

Free! For the user.

Value Proposition

Pricing tactic

Democrata sells data to the construction and maritime sector. The aggregated data Democrata provides could save construction companies millions of dollars by avoiding ancient burial grounds and other archaeologically important sites.


Viloc is a company automating tool management for the construction industry. By placing a handy little transmitter on all equipment of a construction company, the equipment is directly linked to a web application at their office. No more unused or stolen equipment!

1. Democrata 2. Viloc


Current cost of yearly safety buffer X added risk of changing the current way of working (0-100%)

High investments equal high risk. Keeping investments low equals high flexibility, a goal of every CEO.

#7 Flexibility (aka. lower fixed cost) Third Party

pays the bill

Free! For the user.

Value Proposition

Pricing tactic

An international network of rapid prototypers and additive manufacturers. A given company uploads a 3D model to the Additively website in order for the Additively system to help optimise the costs and efficiency of getting the model 3D printed. Only variable costs for their clients to be found here.


A co-intrapeneur that joins 1-2 days per week to keep everyone focused. Most of the time this person will steer the validation of critical business assumptions in the first months of a corporate venture. The collaboration can stop every month without consequences (= shameless BOI advertising).

1. Additively2. Hire a lean entrepreneur


Cost of a wrong investment (or hire) X the amount of times this happened during the last few years

Allowing businesses to distinguish themselves from other businesses will make them feel important. Often used in gaming!

#8 Vanity/Reputation Third Party pays the bill

Free! For the user.

Value Proposition

Pricing tactic


Gore-Tex is THE membrane to make something 100% waterproof while keeping air going through. Using the membrane provides manufacturers of shoes, jackets, etc. a trademark that distinguishes them from manufacturers using other solutions. (Example in flooring: Quickstep Seal & Click)

2. Gore-Tex


Pricing interviews are required in this case - and in all other cases ;) -

While Windows Pro is priced much higher than the basic version, both versions of Windows do not differ that much in features, The reason is simple. Would you like to be the one opening your ‘Windows Home Edition’ at the first meeting with a potential client?

1. Windows 8 Pro

Robin provides an online service that recognises the arrival of people in a certain room. The service automatically schedules in spontaneous meetings, or indicates whether a room is being used or not.

1. Robin

Automation of repetitive tasks and making an organisation ‘lean’ are examples of clean OPEX savings. No company is perfect. Search and find ;).

#9 OPEX saving Third Party pays the bill

Free! For the user.

Value Proposition

Pricing tactic

Chitale Dairy places Allflex RFID tags in cows’ ears to receive information on whether the animals are in heat or need to be vaccinated or dewormed. This information is transmitted via the cloud to farmers’ mobile devices. the goal is to increase the amount of milk production while reducing the number of cows, which will also reduce the methane production of the farm.


2. Chitale Dairy


For people: time saved in hours X proportion that can (or will be) used to do something productive for the company X

average wage cost per hour. For other OPEX: fix a reference cost & claim part of the savings after a certain time

CEMEX installs sensors in the customer's silos to track consumption and inventory information. The cement inventory levels are monitored and transmitted. CEMEX personnel creates a demand plan and dispatches cement to the customer's site, ensuring a seamless and continuous supply.. Customers can view current stock levels and orders received in the CEMEX Connect customer Online resource center.

By using light, color and patterns on a badge with a LED and e-ink display, Ticto is using a visual indicator that allows any group of individuals to regulate itself. Ideal for a flexible workforce with variable applicable rules on safety, security, allowances, credentials, contracts, etc.

Open communication and transparency are key trends in business. The more leaders can share with their employees, clients, shareholders and partners, without unveiling ‘real’ company secrets, the more trust they receive.

#10 Transparency Third Party pays the bill

Free! For the user.

Value Proposition

Pricing tactic


1. Cemex Smart Silos 2. Ticto


How much time do managers ‘lose’ by managing questions or mistakes based on limited information? What is the cost of

fraud in your company?

If the Coca-Cola company can deliver a bottle of soda to a village deep in the African countryside on a daily basis, why can’t governments and nonprofits figure out how to do the same with life-saving pharmaceuticals? Coca Cola launched a pilot project in Tanzania and decreased delivery time by 84%.

China banned game consoles from 2000 until 2014, which caused Sony difficulty in penetrating the Chinese market. The joint venture with Shanghai Oriental Pearl Group should help to market Sony’s PlayStation products in the country.

Typically two companies form a strategic partnership when each possesses one or more business assets that will help the other, but that each respective other does not wish to develop internally. In a one time deal, we call it barter.

#11 Strategic partnership Third Party

pays the bill

Free! For the user.

Value Proposition

Pricing tactic

How it usually works - General visualisation

1. Coca Cola & Global fund

2. Sony & SOPG


IncIncHQHQ

MyStartup.com Consumer

Service

5

Lower price than service cost(often free)

Data, the right to use data or something elsenon monetary and valuable for the MyStartup.com

IncIncIncInc

Company

Dropbox gives more online space to their PRO users that paid for the service. Meanwhile, Business users have unlimited space and extra services for teams to collaborate.

Slack is a platform for team communication: everything in one place, instantly searchable, available wherever you go. Slack is free to use for as long as you want and with an unlimited number of people. Functionalities will be limited once your organisation reaches 10k messages.

Segmenting your user base in users that get the service for free and users that pay, is called a freemium business model. The paying customers usually have access to superior features.

#12 Freemium Third Party pays the bill

Free! For the user.

Value Proposition

Pricing tactic


1. Slack

2. Dropbox


Clients

IncIncHQHQ

My organization

IncIncIncInc

SME

IncIncIncInc

SME Pro

IncIncIncInc

Corporate

Free Service

Pro Service

Pro Service

5

Pay per use

5

Subscription

Offer what you want for their services and they pick the offers they like. Apart from money, value drivers for 8k could be: availability of their designers, big brands for their portfolio, etc.

Each year, business coach Jennifer Martin, owner of Zest Business Consulting, offers new clients the opportunity to pay what they want for a two-hour business strategy session. These clients are often happy to give her testimonials or offer referrals and 30% are converted into clients who pay regular rates after experiencing the value of her services.

Similar to donation but with a stronger focus on revenues, not users. Here you get to choose what you pay for the product. Only works when variable costs are negligible (e.g. music, games, virtual books, software, etc.)

#13 Pay-what-you-want Third Party

pays the bill

Free! For the user.

Value Proposition

Pricing tactic

How it usually works - General visualisation1. Zest

2. 8k design agency


IncIncHQHQ

MyStartup.com Consumers

Information

5

Money

IncIncIncInc

Company

Product

SmartThings is building an open platform for smart homes and the consumer Internet of Things. They have been able to create a community of 5,000 developers that use its open platform. Consequently, 1,900 new devices and 2,300 new apps were developed on its platform in a span of 90 days.

Makes all their electric vehicle patents available for free. Ford (Electric), BMW (Electric) and Toyota (hydrogen) followed their example in a race to get the entire industry to adopt their technology.

Companies make one of their core assets (technology, user base, etc.) available for competitors and/or partners to accelerate the market and to make their technology the standard. Often only one technology can survive. Do you remember the Betamax vs. VHS cassette battle?

#14 Setting the standard Third Party

pays the bill

Free! For the user.

Value Proposition

Pricing tactic


1. Tesla

2. SmartThings


IncIncHQHQ

MyStartup.com Consumer

Service

5

Lower price than service cost(often free)

RightService

Coursera is an education platform that partners with top universities and organisations worldwide, to offer courses online for anyone to take, for free. Imagine the impact of a powerful lecture with 200k students attending…

All (big) industry conferences and fairs are sponsored by companies in return for exposure: a speaker, an exhibitor stand, a logo on all flyers, etc. Sponsorship is a way of advertising (with a nice fiscal advantage).

The user becomes the product. Companies pay to reach the customers of your service. The desired result is to drive consumer behaviour with respect to a commercial offering.

#15 Advertising Third Party pays the bill

Free! For the user.

Value Proposition

Pricing tactic


1. Coursera

2. Mobile World Congress


IncIncHQHQ

My organization

IncIncIncInc

Company

IncIncIncInc

Advertiser

Service

Exposure

5

Pay per X

5

Money

Zenefits is offering free cloud-based HR software to any company. So companies can centralise all of their employees’ information in one dashboard, which is a big win. In this dashboard, there are suggestions for health care insurance plans, which the employer will pay for with a 5% referral fee.

Bosch offers remote vehicle diagnostics services to vehicle owners and dealers through its tele-diagnostics system. To make the service effective for the users, Bosch’s system enables information exchange with third-party services such as car workshops and roadside assistance.

When referring your customers to another company, you are driving their sales. Depending on the product and program, 5-10% of the product price is a good indicator of the lead fee you’ll receive.

#16 Affiliate/Referral Third Party pays the bill

Free! For the user.

Value Proposition

Pricing tactic


1. Zenefits

2. Bosch tele-diagnostics


IncIncHQHQ

My organization

IncIncIncInc

Company Buyer

IncIncIncInc

Company Seller

Leads

5

Referral fee

Contact data

5

MoneyProduct

Free Service

KISS metrics connects all marketing data to real people. Companies can see everything a person has done, from the first touchpoint to the last and are able to anticipate on this behaviour.

Selling customer data is a lucrative business for many purposes: targeted advertising, medical research, personalised services, etc. Being transparent is one of the keys to success!

#17 Data Resell Third Party pays the bill

Free! For the user.

Value Proposition

Pricing tactic


2. KISSmetrics


PatientsLikeMe offers a valuable (and free) P2P service for people searching for the best treatment of their disease. Anonymous data is sold to Pharma, so they can come up with better treatments.

1. PatientsLikeMe

IncIncHQHQ

My organization

IncIncIncInc

Users

IncIncIncInc

Data Buyer

Free Service

Data

Insights

5

Access fee

When matching 2 relevant parties to each other, both value your service and might pay for it. Dating platforms are the best known example of matchmaking platforms. All kinds of Tinders for X exist already (eg. Jobr is a Tinder for jobs).

#18 Matchmaking Platform Third Party

pays the bill

Free! For the user.

Value Proposition

Pricing tactic



IncIncHQHQ

My organization

Consumer

Consumer

Experience Experience

Service

5

Money

Service

5

Money

“Finding your next strategic partner should take minutes, not months” is what they claim. Powerlinx is a platform to find suppliers, clients, partners, etc.

Babelverse is P2P translator for spoken communication available on-demand in any language and remotely on any device. Fact: launched as a business service but envisioning a tool that will help bridging the language gap between oversees volunteers and victims of nature disasters.

1. Powerlinx

2. Babelverse

IncIncIncInc

Company

IncIncIncInc

Company

FLOOW2 is 'the World's Reset Button’, a sharing marketplace for business equipment, services and personnel. Perfect if you need short term resources or if you have overcapacity.

StyleSeat is the platform for professionals in the beauty and wellness industry to run and grow their business. Consumers receive a one-stop-shop for beauty & wellness appointments. Easily copyable to healthcare or manufacturing industry.

A marketplace always has clear supply and demand. Bringing these 2 sides together might require a platform (marketplace) or a serviceprovider (broker). The one delivered the most value to is mostly the one that pays the commission fee (can be buyer, seller or both).

#19 Marketplace Third Party pays the bill

Free! For the user.

Value Proposition

Pricing tactic


1. FLOOW2

2. StyleSeat


IncIncHQHQ

MyStartUp.com

ConsumerConsumer

5

Money

Experience Product Service

Community

5

CommissionPlatform

IncIncIncInc

Company

IncIncIncInc

Company

Being world's largest brewer with a 25 percent global market share, has its advantages. While clients have to pay after a month, suppliers (eg. farmers) get paid only 4 months after delivery. The result: a pile of cash of aprox. $10B for AB Inbev.

Wireless and broadcasting companies are best in this business. Where they really generate cash is in their careful management of operating working capital. Verizon for example can use 50% of its revenues for growth investments.

While most corporations have figured out how to start a business with other people’s money, some companies have figured out how to actually run a business on other people’s money by collecting as much money as possible in advance from customers and holding out on paying others.

#20 Negative working capital requirement Third Party

pays the bill

Free! For the user.

Value Proposition

Pricing tactic


1. AB Inbev

2. Verizon Communications


Grain Cash-20Sell Beer Cash in

Negative WCR (estimate for AB Inbev:

3 months = 10Bio)

This is how most products are sold. You pay a one time fee and you own the product or you receive access to a lifetime service.

#21 Flat rate Third Party pays the bill

Free! For the user.

Value Proposition

Pricing tactic



IncIncHQHQ

MyStartUp.com Consumer5

One-Time Fee

Service Product

VPN Unlimited is your one-stop-shop for protecting your WiFi connection, securing your online activity, and bypassing web content restrictions. You pay €40 for a lifetime subscription.

2. VPN Unlimited

You buy it. You draw a face on it to extend its lifetime for 3 more minutes. You eat it. You’re done.

1. A banana

IncIncIncInc

Company

Zubie is a connected-car app that provides location tracking, driver scoring, alert and location sharing services by connecting each car to the internet with a Zubie key. Subscription fee of $149/year/key

A subscription is a service you sell in a certain timeframe. The service can vary: receiving a newspaper every day, using a cloud service (software), being able to call car assistance when needed, etc.

#22 Subscription Third Party pays the bill

Free! For the user.

Value Proposition

Pricing tactic


2. Zubie


IncIncHQHQ


Subscription

Service

Adobe Creative Suite has had a ‘single purchase for life’ for a long time. Now they switched to a cloud service: you only pay for what you need for the time you need it. According to Adobe it’s cheaper. Disclaimer: for frequent users it’s not ;).

1. Adobe Creative Cloud

IncIncIncInc

Company

The fast pace of projection disruptions resulted in cinemas to either work with outdated technology or spend more than they earn. Barco proposed to deliver a projection service instead of selling the projectors with a cost per hour projected.

Customers receive a physical product for a limited period to fulfil their needs. Within the leasing period, a product can only serve the needs of one customer (exclusive use).

#23 Leasing Third Party pays the bill

Free! For the user.

Value Proposition

Pricing tactic


Clients pay for the light they use, while Philips remains the owner of all fixtures and installations. One of the main reasons: energy savings without investment costs of LED lights. Service in collaboration with Cofely. Implemented at Schiphol Airport.

1. Pay-per-lux (Philips)

2. Barco Leasing Program


IncIncHQHQ


Fee/Time

IncIncIncInc

Company

5

Flat Fee

Product (bought)

ServiceIncIncIncInc

Company

Proximity monitors, speed controllers, lane keeping assistants – such systems are commonplace on cars. Now, similar systems are finding applications in mining vehicles as well. The objectives: greater productivity, efficiency, and safety. Currency: Cost per ton mined

In India, Asian Paints offers the service of painted walls rather than selling a can of paint. This service strategy has benefitted beyond new revenues. It helps to ensure that their high end products are applied properly, which further helps in improving customer satisfaction. Moreover, selling services also helps the firm to get closer to the end-customer.

Some products are only used a limited amount of times per customer (a car is idle 97% of the time on average). Paying only for the times you need a product/service creates flexibility and increases the value per use.

#24 Pay-per-use (= result based) Third Party

pays the bill

Free! For the user.

Value Proposition

Pricing tactic


1. Siemens mining

2. Asian Paints


IncIncHQHQ


Fee per use

ServiceIncIncIncInc

Company

A pricing strategy with highly flexible prices for products or services based on different variables: demand-based, time-based , profile-based, performance based, etc.

#25 Dynamic pricing Third Party pays the bill

Free! For the user.

Value Proposition

Pricing tactic


DSM charges clients a percentage of the extra revenues or savings by the extra energy generated because of DSM anti-reflective coating on their solar panels.

2. DSM reflective coating


Airlines change prices depending on the day of the week, time of day, and number of days before the flight, number of seats, departure time and average cancellations on similar flights

1. Qatar Airways

IncIncHQHQ

My organization Consumer

5

Price based on one or multiple variables

Service

IncIncIncInc

Company

FirstBuild™, GE Appliances’ new global co-creation community of designers, engineers and appliances users, launched the Paragon Induction Cooktop with discount pricing through a campaign on IndieGogo. With success!

Pre-sales is a way to offer a product/service/right for sale before it is developed entirely. Mostly used to fund a project or to receive proof of customer interest before launch. Used for decades by companies like Boeing, Airbus and Bombardier. Always to be combined with another pricing tactic!

IncIncHQHQ

MyStartUp.com

Fund Seeker Community Member

Community Member

Service

5

% Commission Small Reward

5

Small Micro-Funding

Large Reward

5

Large Macro-Funding Funding Crowd

#26 Pre-sales Third Party pays the bill

Free! For the user.

Value Proposition

Pricing tactic


1. General Electric


Intraboot is a tool to organise crowdfunding campaigns within your firm. All employees receive a virtual budget and choose together where investments go to and can propose new initiatives. IBM and Audi are pioneers in this area.

2. Intraboot

IncIncIncInc

Company

IncIncIncInc

Company

IncIncIncInc

Company

Salesforce offers lots of own apps in their AppExchange. Through acquisitions and own development they make sure to sell as much extra products as possible once a company chooses for SalesForce.

aka. Add-ons. Some customers might have deeper pockets than you think. Always allow them them to spend all the money they have! The gaming industry understands this aspect, the music industry does not.

#27 Up-selling Third Party pays the bill

Free! For the user.

Value Proposition

Pricing tactic


BASF developed an mobile online tool which enabled the digital disease identification of plants on the field. A direct connection between the most applicable BASF products and the disease is then established to treat the affected plants. Up-sales resulted in big growth in South America.

1. Salesforce AppExchange

2. BASF Agri tools


IncIncHQHQ

MyStartup.com 5

Low Price

Cheap product

Consumables

5

Recurring Premium Price

IncIncIncInc

Company

Revenues are spread over the lifetime of a product. After a flat fee, customers have recurring expenses they can’t refuse. (e.g. Razor blades, coffee pads, updates GPS devices, etc.)

#28 Razor-blade Third Party pays the bill

Free! For the user.

Value Proposition

Pricing tactic


Nespresso doesn’t earn (much) on their coffee machines (they don’t even make them themselves). All of the money comes from the pads. Interesting fact: Dyson chose for the opposite strategy by taking away vacuum cleaner’s bags.

“An update is still cheaper then a new GPS system, right?” This is exactly how Tomtom and Garmin made big money for years. Users choose to either pay or use outdated maps.

1. Nespresso

2. Tomtom GPS updates


IncIncHQHQ

MyStartup.com Customer5

Low Price

Cheap product

Consumables

5

Recurring Premium Price

IncIncIncInc

Company

The da Vinci Surgical System is a robotic surgical system made by the American company Intuitive Surgical. It is designed to facilitate complex surgery and allows remote surgery. Often several hospitals share the cost of one device.

IMEC is a cutting edge research center based in Leuven, Belgium. Together with partners from across the value chain they tackle challenges to co-develop an economically scalable route to high-volume manufacturing of innovative products.

When customers are not able to pay for the entire product, you can allow them to buy it together with peers. Another variation of buying together with peers is ‘group buying’ to achieve a discount on everyones product or service.

#29 Co-investment Third Party pays the bill

Free! For the user.

Value Proposition

Pricing tactic


1. Da Vinci Robots

2. IMEC


Group of companies

IncIncHQHQ

My organization5

Total investmentdivided by # companies

IncIncIncInc

Company

IncIncIncInc

Company

IncIncIncInc

Company

Product or development

Does your product/service

remember previous use of a

user? (eg. memory card)

Can the user receive a higher

status by using the product?

2.Tip jar/donation

3. Barter

4. Freemium

9. Mystery/Surprises

16. Data Resell

5. Pay-what-you-want

10. Convenience/ Shortcuts

12. Exclusivity/ Limited Availability

Free!For the user.Third partypays the bills

13. Get one - Give one

14. Advertising

Do you want to offer a

product/service to people

that can't afford it?

Would users value the possibility to

share the product with their peers?

Would the status only be relevant

amongst the user base of your product?

Hmmm...

Making money on your product seems to be a tough one.

Get out of your comfort zone! It's innovate or die.

Is it your goal to have

direct revenue from this

product/service?

Do you believe other companies

would have interest in targeting

your user base?

Do you generate user-data

relevant for others?

Are there any complementary

services/products to your offer

that your users expect?

Is the variabel cost per extra user

non-existent or negligible?

Can you think of features that only

part of your user base would pay for?

Does your product need a critical

amount of users to show it's value?

Do your users have non monetary

resources the company (or other

users) normally would have to pay for?Did you develop a feature/product

significantly more convenient than

the best alternative users have?

What about offering a

box without telling what's inside?

#Awesome! You have some

options that your users

might be willing to pay for.

Do you want the user to own the

product once they pay?

Would you like proof of

interest from your users

before you launch?

Do your users want to

Yes!

Will the user have the

exclusive right to use this product?

Not nessecarely!

Not really!

Nope!

It's not about the ability to pay. I'm just not sure if everyone will pay!

In fact, yes!

Not at all, they already use everything they have!

Exactly!

Check!

Ads, are you crazy?

Not really...

Shht... user data is our competitive advantage!No!

My product is all they need!

Yes!

It's not about the money!

Of course!

Definitely!Nope, no critical mass needed!

That's why we make software!

Yes!

We do have some extra costs...

Afraid that you won't receive enough donations?

Didn't I say I don't want them to pay?

Not relevant!

devastated if their user data was lost!

Nope!

Absolutely!

No! Amongst everyone!

Yes, they would love it! No, it would lower the value!

No...Hell yeah!

Not knowing what's coming is always kind of exciting!Sounds like gambling!F*ck off!

Close...but yet so far...

Do you want more than one

contact moment with your user?

Not necessary!

Yes, that would be useful!

Seriously? We are not living in the Middle Ages anymore!

Charity? No thanks!

Ever played Monopoly? Go back to start!

Don't forgetto check this one as well!

Your journey requires a teleportation! Find the exit...

Do you want to have an

integrated solution that seems

to be your own offering?

Advice to trusted partner is fine!

Yes, IntegratedSolution

You won't regret this!

High chance that you'll find more reasons for users to pay!

What about these colours?

One Laptop Per Child

Always come together

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