Servitization pricing : creating and combining a service and product ecosystem – Speaker interview

Posted on 05 Nov 2020 by Lena Chatchatrian

Servitization pricing : creating and combining a service and product ecosystem – Speaker interview

Our EPP Dynamic Talks are approaching and we asked one of our top speakers Prof.Dr.Florian Bauer who is Founder and Member of the Executive Board at Vocatus to give us a sneak peek and some insights into his topic. Read the interview below.

Q1. What can the audience expect from your Dynamic Talk focussing on Servitization pricing: Creating and combining a service and product ecosystem, and find out why that

The audience can expect to get a new perspective on products and pricing and to get a first idea of the potential XaaS has for basically any company.

Q2. In your opinion, what are the three key takeaways that registrants will gain from your session? 

The Key takeaways will be:

  1. Service pricing is a huge game-changer and a big opportunity for nearly every sector and company.
  2. How XaaS makes professional pricing even more important and which pricing rules should be considered within the service model.
  3. A purely value-based pricing approach is not sufficient for a XaaS model and behavioral pricing is a far better framework for this business model.

Q3. What do you think is the biggest challenge for companies working on a service and product ecosystem?  

It implies a fundamental shift in our understanding of how pricing and sales are done. In a product-based business model, the focus is on the acquisition, in a service-based model, the focus shifts to up-sell, recurring revenues, and continuous subscription management. That requires everybody in the price-marketing-sales domain to re-define their focus and strategy.

Q4. Why do you think it’s important for the pricing community to attend your Dynamic Talk?

The shift from product to service pricing opens up a lot of new pricing dimensions to be designed, opportunities to be taken, and challenges to be mastered. Moving from a price per product to pricing for service, pricing becomes a much more central aspect of the value proposition as such. In many industries, the price model is the core of the value proposition.

Florian will be speaking together with Dominik Kujawski, Pricing MAnager at Regent Lighting in the Dynamic Talks focusing on Servitization pricing. Their Dynamic Talk will take place on November 19, 3 PM CET. You can register here for free.