How to find new ways to make money as an industrial company? Explore 29 trigger cards with different business model options and pricing tactics (Industrial enterprise version). - by Board of Innovation
2. 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. Fractional
Ownership
Free!
For the user.
Paid!
The user = Client
Third party
pays 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 be
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!
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 forget
to 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!
Good
idea!
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,
Integrated
Solution
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 ne
What would that mean !
for your idea?
!
Try to imagine…
What would that mean !
for your idea?
!
Try to imagine…
What would that mean !
for your idea?
!
Try to imagine…
What would that mean !
for your idea?
!
Try to imagine…
For example:
10. Convenience/ shortcuts
What would that mean !
for your idea?
!
Try to imagine…
What would that mean !
for your idea?
!
Try to imagine…
For example:
10. Convenience/ shortcuts
What wou
for yo
Try to
What wou
for yo
Try to
What wou
for yo
Try to
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
3. 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
4. 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
How much value do you create?
Where we would start our pricing strategy:
Set a (very) high price and
lower if you don’t get traction
6. 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.
2 Examples to turn theory into practice
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
How much value do you create?
Where we would start our pricing strategy:
Saved cost per acquisition
(google ads, working hours, etc.)
7. 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.)
2 Examples to turn theory into practice
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
How much value do you create?
Where we would start our pricing strategy:
Average of extra jobs (retention)
X cost of acquiring a new client
8. 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.
2 Examples to turn theory into practice
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
How much value do you create?
Where we would start our pricing strategy:
Average cost of hiring per year divided by
average turnover time of employees
9. 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.
2 Examples to turn theory into practice
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
How much value do you create?
Where we would start our pricing strategy:
Current cost of yearly safety buffer X added risk of
changing the current way of working (0-100%)
10. 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.
2 Examples to turn theory into practice
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. Additively
2. Hire a lean
entrepreneur
How much value do you create?
Where we would start our pricing strategy:
Cost of a wrong investment (or hire) X the amount
of times this happened during the last few years
11. 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
2 Examples to turn theory into practice
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
How much value do you create?
Where we would start our pricing strategy:
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
12. 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 Examples to turn theory into practice
2. Chitale Dairy
How much value do you create?
Where we would start our pricing strategy:
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
13. 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
2 Examples to turn theory into practice
1. Cemex Smart Silos 2. Ticto
How much value do you create?
Where we would start our pricing strategy:
How much time do managers ‘lose’ by managing questions or
mistakes based on limited information? What is the cost of
fraud in your company?
14. 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
2 Examples to turn theory into practice
IncIncHQHQ
MyStartup.com Consumer
Service
5
Lower price than service cost
(often free)
Data, the right to use data or something else
non monetary and valuable for the MyStartup.com
IncIncIncInc
Company
15. 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
How it usually works - General visualisation
1. Slack
2. Dropbox
2 Examples to turn theory into practice
Clients
IncIncHQHQ
My organization
IncIncIncInc
SME
IncIncIncInc
SME Pro
IncIncIncInc
Corporate
Free Service
Pro Service
Pro Service
5
Pay per use
5
Subscription
16. 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 visualisation
1. Zest
2. 8k design agency
2 Examples to turn theory into practice
IncIncHQHQ
MyStartup.com Consumers
Information
5
Money
IncIncIncInc
Company
Product
17. 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
How it usually works - General visualisation
1. Tesla
2. SmartThings
2 Examples to turn theory into practice
IncIncHQHQ
MyStartup.com Consumer
Service
5
Lower price than service cost
(often free)
RightService
18. 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
How it usually works - General visualisation
1. Coursera
2. Mobile World
Congress
2 Examples to turn theory into practice
IncIncHQHQ
My organization
IncIncIncInc
Company
IncIncIncInc
Advertiser
Service
Exposure
5
Pay per X
5
Money
19. 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
How it usually works - General visualisation
1. Zenefits
2. Bosch tele-diagnostics
2 Examples to turn theory into practice
IncIncHQHQ
My organization
IncIncIncInc
Company Buyer
IncIncIncInc
Company Seller
Leads
5
Referral fee
Contact data
5
MoneyProduct
Free Service
20. 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
How it usually works - General visualisation
2. KISSmetrics
2 Examples to turn theory into practice
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
21. 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
How it usually works - General visualisation
2 Examples to turn theory into practice
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
22. 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
How it usually works - General visualisation
1. FLOOW2
2. StyleSeat
2 Examples to turn theory into practice
IncIncHQHQ
MyStartUp.com
ConsumerConsumer
5
Money
Experience Product Service
Community
5
CommissionPlatform
IncIncIncInc
Company
IncIncIncInc
Company
23. 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
How it usually works - General visualisation
1. AB Inbev
2. Verizon Communications
2 Examples to turn theory into practice
Grain Cash-20Sell Beer Cash in
Negative WCR
(estimate for AB Inbev:
3 months = 10Bio)
24. 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
How it usually works - General visualisation
2 Examples to turn theory into practice
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
25. 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
How it usually works - General visualisation
2. Zubie
2 Examples to turn theory into practice
IncIncHQHQ
MyStartUp.com Consumer5
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
26. 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
How it usually works - General visualisation
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
2 Examples to turn theory into practice
IncIncHQHQ
MyStartUp.com Consumer5
Fee/Time
IncIncIncInc
Company
5
Flat Fee
Product (bought)
Service
IncIncIncInc
Company
27. 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
How it usually works - General visualisation
1. Siemens mining
2. Asian Paints
2 Examples to turn theory into practice
IncIncHQHQ
MyStartUp.com Consumer5
Fee per use
Service
IncIncIncInc
Company
28. 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
How it usually works - General visualisation
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
2 Examples to turn theory into practice
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
29. 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
How it usually works - General visualisation
1. General Electric
2 Examples to turn theory into practice
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
30. 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
How it usually works - General visualisation
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
2 Examples to turn theory into practice
IncIncHQHQ
MyStartup.com 5
Low Price
Cheap product
Consumables
5
Recurring Premium Price
IncIncIncInc
Company
31. 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
How it usually works - General visualisation
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
2 Examples to turn theory into practice
IncIncHQHQ
MyStartup.com Customer5
Low Price
Cheap product
Consumables
5
Recurring Premium Price
IncIncIncInc
Company
32. 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
How it usually works - General visualisation
1. Da Vinci Robots
2. IMEC
2 Examples to turn theory into practice
Group of
companies
IncIncHQHQ
My organization 5
Total investment
divided by # companies
IncIncIncInc
Company
IncIncIncInc
Company
IncIncIncInc
Company
Product or
development
33. 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
3. Barter
4. Freemium
9. Mystery/Surprises
16. Data Resell
5. Pay-what-you-want
10. Convenience/
Shortcuts
12. Exclusivity/
Limited Availability
Free!or 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
hare the product with their peers?
e status only be relevant
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
interest fromb
Yes!
Will the user have the
exclusive right to use
this product?
Not
nessecarely!
Not really!
It's not about the
ability to pay. I'mjust not sure ifeveryone will pay!
In fact, yes!
Not at all, they already
use everything they have!
Exactly!
Check!
Ads, areyou crazy?
Not really...
Shht... user data
is our competitiveadvantage!
No!
My product is allthey need!
Yes!
It's not aboutthe money!
Of course!
Definitely!
Nope, no criticalmass needed!
That's whywe makesoftware!
Yes!
We do have someextra costs...
Afraid th
won't reenough dona
Didn't I say I don't
want them to pay?
Not relevant!
iftheir user datawas lost!
Nope!
Absolutely!
No! Amongst everyone!
! No, it wouldlower the
value!
No...
Hell yeah!
Not knowingwhat's comingis always kindof exciting!
Sounds likegambling!
F*ck off!
Close...but yet so far...
nt more than one
ontact moment with your
user?
Not
necessary!
Yes, that wouldbe useful!
Seriously? We arenot living in the
Middle Ages anymore!
Charity?No thanks!
Ever played Monopoly?
Go back to start!
Don't forgetto check thisone as well!
Your journey requires
a teleportation! Findthe exit...
Do you want to have an
integrated solution that seems
to be your own offering?
Adv
trus
partn
is fin
Yes,
Integrated
Solution
You won'tregret this!
High chance that you'll
find more reasons for
users to pay!
hese colours?
One Laptop Per Child
Always come t
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