pricing model Archive

Use the right pricing model for third-party services

Which pricing mechanism should your company choose when buying third-party services? What is the optimal contract length? And what is the best way to manage switching costs? These questions are even more important today than in the past because the services industry is switching to new pricing mechanisms for digital services. Understandably, these changes

How to Work with Your Service Provider in a Consumption-Based Pricing Model

I’ve blogged several times in the past three years about the benefits of switching to a consumption-based pricing model for services, especially the benefit it delivers in shaving off operational costs. In this model, companies pay only for what they use instead of paying for over-capacity. We see customers’ desire for consumption-based pricing coming