Article at a glance:

Putting a price on solutions

Suppliers of solutions—integrated bundles of related products and services—often don't get the price premium they deserve. That's because setting the right price for a solution is no easy matter: price too high and customers will meet their own needs; price too low and suppliers won't get paid for the value they are delivering and the effort that went into it.

The take-away

To price solutions effectively, suppliers need to understand the economic underpinnings of their customers' businesses and the incremental benefit their solution offers compared to the next best alternative.