Pricing Model Misalignment Losses
Definition
In long-term support contract pricing, cost-based models fail to reflect customer value, leading to revenue shortfalls compared to value-based strategies.
Key Findings
- Financial Impact: AUD 20,000+ per product annually (opportunity cost from cost-based vs value-based pricing)
- Frequency: Ongoing, per pricing cycle
- Root Cause: Static pricing without customer value assessment
Why This Matters
The Pitch: Embedded software firms in Australia 🇦🇺 waste AUD 20,000+ annually per product on suboptimal pricing. Automation of dynamic pricing models maximises revenue.
Affected Stakeholders
Pricing Manager, Product Manager, CFO
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Missed Contract Renewals
Churn from Unpredictable Renewal Pricing
Unbilled Customisation Services
Rework from Poor Customisation Tracking
Legal Disputes from Poorly Managed Systems
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