Selling smart products is not the same as that for the conventional goods. It needs some level of ingenuity to execute the sales process fine. Before embarking on this, a few questions need to be posed by the top leadership. For a start, one need not continue with the policy of the present pricing. Instead one needs to initiate the “pay- per- performance” philosophy. The payment needs to be made as one goes. The payee also needs a change. This has to be effected while keeping in mind the eco- system and not just the supply chain. Smart product makers also need to conduct a data warehousing operation, to truly understand the reasons for customers’ likes or dislikes. The fundamental needs thus have to be addressed. To collect such a vast treasure-trove of data, the company will need to disburse content for free. The currency now needs to be data and not the money per se. It will also help these platforms go toe- to- toe with the likes of Google, LinkedIn and Facebook as platforms for digital marketing. A sustainable business model will need to prove how this data collection is of any use to its customers even.

Source:https://hbr.org/2019/07/5-questions-to-consider-when-pricing-smart-products

Uploaded Date:29 July 2019