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PropositionProducts and services

The right offering, at the right price

Many offerings grow out of one-off customer requests and projects, and the price is often cost plus margin. The Next Organization helps you decide what to offer and at what price, based on how customers use it.

Sound familiar?

Your offering is fragmented and hard to explain
Discounts are the rule rather than the exception
Your organisation hesitates to drop products or services
Your prices have not been reviewed for years
Your margin is under pressure while revenue grows
Every customer request leads to new custom work

What is a portfolio and pricing analysis?

A portfolio analysis assesses every product and every service on one question: which job does it solve, and for which customer? What counts is not the technology or the effort, but what it delivers for the customer in use. For each item you choose to strengthen, add or phase out.

Product or service, and the price that goes with it

Product What to look at Service

Value is created Through ownership and use In the delivery, together with the customer

Assess on What it delivers in use The outcome for the customer, not the effort

Watch out for Standardisation, connectivity and as-a-service Recurring value and whether people-based work can scale

The price is part of that choice. Your costs are the floor; the value to the customer is the ceiling. Between the two, choose deliberately: premium, market rate or volume. A good price is sustainable, explainable and manageable.

Floor Your costs
Volume
Market rate
Premium
Ceiling The value to the customer

Custom work and standard products are not mutually exclusive. With standardisation and a tailored element, it stays custom work but becomes manageable. That works for products and for services.

Every item in your portfolio belongs to one of your Target groups. If you are wondering how customers want to pay, read more under Revenue model.

What you get

You get a clear portfolio, with a well-founded choice for each product or service. It comes with a coherent price structure for each product and customer group. You can explain and stand by every price. And your salespeople can explain the offering in a few sentences.

Frequently asked questions

How do you analyse a product portfolio?

List all your products and services and assess each item on the job it solves. Then look at margin, scalability and how the items fit together. An item without a clear job is a candidate for phasing out.

How do you set the right price?

Start with the value to the customer, not with your cost price. Compare what your offering delivers with the alternatives the customer has. Where you position yourself between cost and value follows from your Value proposition.

How often should you review your portfolio?

At least once a year, and whenever your market or strategy changes significantly. Check each item to see whether the job is still relevant and whether the price is still right. That stops your offering from quietly sprawling.

How do you combine custom work with a standard offering?

Build your offering from modules that you combine for each customer. Define which part is standard and how much room there is for custom work. That way you keep the flexibility, without every order needing a new design.