Economic downturns are the optimal time to transition to usage-based pricing
Madhavan Ramanujam · The art and science of pricing | Madhavan Ramanujam (Monetizing Innovation, Simon-Kucher) · Dec 8, 2022 · at 1:31:20
Madhavan Ramanujam, pricing strategist and partner at Simon-Kucher, discusses how economic downturns provide leverage to adopt usage-based pricing models.
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“Frankly, this is the best time to actually think about these things. Like if, you know, if people are not using the product, changing it to a usage-based, people would say that's great because You know, there's a downturn. We're not using the product. And they would opt into a usage based pricing because they are going to pay lesser because they're not using. But when times are good again, they're going to use it. And basically what you did is you just lodged in a usage based pricing easily compared to like trying to do that when the times are good.”
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