How do you price an IoT offering? What are the steps one should take in determining a price point for an IoT product or service? Pricing an IoT offering that drives the highest return to your company can be a daunting challenge. Pricing the solution incorrectly can mean the difference between a compelling ROI or a failed experiment. The article that follows does an excellent job of breaking down the steps that should be taken when coming up with the right price – especially for an emerging marketplace.
The Internet of Things is advancing at a breakneck pace, with new innovations in almost every industry.
This is happening on two fronts: the transformation of “dumb” objects into data-driven smart machines, and the creation of wearable devices to monitor and manage the biological state of humans and animals.
These two areas are opening up major opportunities in efficiency and effectiveness. Utilizing mechanical devices to collect data and execute optimal solutions automatically (perhaps with an AI-human interface) unlocks substantial business value.
But, this new IoT device-plus-data paradigm creates a major commercial challenge: how do you price IoT offerings when they’re so transformational?