We hosted the second webinar in our ‘profitable pricing’ series on Wednesday 30th June, with Esther Carder, Media Partner at Moore Kingston Smith chairing the session. Esther teamed up with our panel guests, Caroline Johnson, Director at The Business Model Company, and Tess Wicksteed, Partner, Strategy at Here Design. Caroline discussed what it takes to change your business model, followed by Tess, who spoke about her personal experience of turning productization theory into workable practice.
We are delighted to share out top key takeaway points from the session:
- Sustainable business model change requires a full system change, not just re-packaging
- Alternative models produce a different set of financial KPI’s, the evidence of having successfully transitioned is in doubling or trebling your gross revenue per head, and sustaining 35-45% net margin. So, it is important to commit to that level of performance at the beginning and don’t compromise
- Moving from a service-based business model to a productised one is a creative process; it is not about charging more
- The devil is within, not external. If you are in a legitimate and authentic product/tech or consulting model, different rules of the game apply, and the external challenges you think are your greatest disappear. Your greatest challenge is your own beliefs, behaviours, and paradigms
- You don’t need to do everything at once. Prioritise/focus on one or two really compelling products and learn from that process
- Originality at all costs: a product is only truly valuable if it actually is unique – true productization is not about spin/repackaging
- Some things are easier to productise than others
- Productization is an engine of change as well as growth and profit
If you would like further information or have any questions, please do get in contact.