Our client was a provider of industrial automation products and solutions for manufacturers. They were preparing to deploy an innovative, real-time operational intelligence software that could predict machine maintenance and repairs. Since our client historically sold products and consulting services, they were unfamiliar with software pricing models. They asked EMM Group for guidance.
We worked with the client to evaluate their proposed pricing model—a perpetual license built upon a cost plus model. After a thorough review and voice of the customer interviews, we recognized that the client did not fully understand the value that this software provided for manufacturers. We created a unique economic value (UEV) that quantified the value at the customer level.
Our client entered the market with a value-based pricing structure 50% higher than their cost plus model. The UEV tool helped their sales team justify the higher price, and sales are on target to meet expectations.