In Chapter 3 of our Business Model Innovation series, we tackle one of the most critical—and often neglected—pillars: Value Capture. Even the most groundbreaking innovations fail if they can’t translate value into sustainable revenue.
Working with tech and innovation companies, I’ve seen too many teams fall into predictable traps: underpricing their solutions, misaligning pricing metrics with customer value, or defaulting to “industry standards” that erode profitability. This chapter shows you the basic steps towards building your pricing.
- The 4 Strategic Pricing Approaches (when to use profit maximization vs. market penetration).
- How to Set Prices—from cost-plus to value-based models
- 6 Monetization Mechanisms (e.g., subscriptions, usage-based, outcome-based) and why hybrid models dominate in scaling tech companies
- The Hidden Pitfalls that sabotage pricing strategies (and how to avoid them)
Pricing isn’t just about numbers—it’s a strategic lever that communicates your brand, shapes customer behavior, and determines whether your business model scales. Get it wrong, and you’ll either leave money on the table or struggle with adoption.
Watch the full video for actionable frameworks, including my Value Capture Audit Template to pressure-test your current strategy:
In Chapter 4 we’ll dive into Unit Economics—how to think about model gross margin profitability at scale.
