When you think about growing a business, most people jump straight to marketing, sales or cost-cutting. Rarely do we talk about pricing. Yet, as we discovered in our recent Masterclass with Jon Manning, pricing is one of the most powerful and most overlooked levers in business.
Here’s the kicker:
That’s not a rounding error. That’s transformational.
Why pricing deserves centre stage
Jon walked us through stories from Coca-Cola, Continental Airlines and Apple to show how pricing decisions can make or break companies.
What stood out? Apple doesn’t compete on price. They shifted the whole conversation to value. Instead of asking “is this phone too expensive?” customers are asking “what will this product let me do?”
It’s a simple mindset shift but a game-changer.
So, how do you actually price in the digital age?
If you thought there was just one way to set prices, think again. Jon unpacked a whole menu of models:
- The classic Good / Better / Best tiers (think Microsoft 360).
- Freemium strategies that hook users in for free, then convert them over time.
- Modular subscriptions where you only pay for the features you use.
- Usage-based pricing that scales with activity, perfect for SaaS or EdTech platforms.
- And the rising star: Outcome-based pricing, where you only pay if it works (Zendesk is already there with its AI products).
The key message? Pricing isn’t about copying what your competitor does. It’s about choosing a model that fits your product stage, your customer, and the value you deliver.
Pricing is not “set and forget”
A huge theme was that pricing changes as your product grows.
- At launch, pricing can be a signal of quality. Pilots and early adopter programs are gold here.
- In growth, customers get savvier, so you need segmentation, bundles and smart packaging.
- At maturity, competition heats up and price sensitivity spikes — focus on creating value, not slashing price.
- In decline, you either re-segment, relaunch or risk being commoditised.
If you only remember one thing: your price should evolve as your product and market evolve.
The do’s and don’ts of raising prices
Changing prices is inevitable but mishandling it can backfire.
- Spotify’s price rise? Cold, impersonal, vague. A lesson in how not to do it.
- Who Gives a Crap? Warm, transparent, human. They explained the “why” and reinforced the impact of their mission.
Jon’s advice: make it personal, give people notice, explain the bigger picture. Customers are more forgiving than you think when you treat them with respect.
Enter AI: the pricing disruptor
If there’s one force shaking up pricing models, it’s artificial intelligence.
Traditional “per seat” pricing is under threat. Why charge per user when AI can do the work of three people? Companies are learning that customers expect pricing to reflect outcomes, not inputs.
The future? Less about access fees, more about paying for results.
Common traps to avoid
We also looked at the biggest mistakes organisations make with pricing. The hits included:
- Leaving pricing decisions until the very end.
- Falling back on cost-plus formulas.
- Ignoring segmentation.
- Making price changes on autopilot.
In other words: don’t treat pricing as a spreadsheet exercise. It’s strategy.
Big Lessons
Jon closed the session with a powerful reminder:
- Pricing is a process, not a project.
- It can deliver ROI faster than almost any other business lever.
- AI is accelerating the move towards value-based pricing.
- And most importantly: the pace of change today is the slowest it will ever be.
In other words, the time to rethink your pricing is right now.
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