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Catalysts have a complex array of potential pricing strategies. One challenge faced by catalysts is how to create value propositions that persuade all groups of customers to get on board the platform. Pricing is one key to that and the main objective of Step 2 of the Catalyst Framework™.
Task (1). Set Separate Prices for Access and Usage Most catalysts can consider charging customers for gaining admission to a physical or virtual platform and for using the platform to interact with other customers. Catalysts Discussed: Sony PlayStation, Microsoft XBox
Task (2). Set Prices to Balance the Demand from Two Sides Most catalysts have the same problem: if they don't get the right balance from the groups they serve, they won't have a business. Catalysts Discussed: Christie's, Symbian
Task (3). Price to Grow Slowly--at First Many successful catalysts have started small and expanded slowly by finding prices that capture and promote the forces that flow between members of the catalyst community. Catalysts Discussed: Microsoft Windows OS, IBM OS/2
Task (4). Pay Customers to Belong (Sometimes) Getting one group of customers to participate at a loss might mean making more than enough profits from another group of customers to offset the loss. Catalysts Discussed: Adobe Acrobat, shopping malls
Task (5). Price for Long-Term Profits Igniting a catalytic reaction and harnessing its forces does not guarantee that a catalyst will ever see positive earnings, much less earn a fortune. Catalysts Discussed: Slate, Lloyd's of London
At the simplest level, catalysts can charge different prices to each group of customers they serve. But more than likely, aspiring catalyst entrepreneurs must explore several issues to find the prices that lead to a successful and profitable catalytic reaction.
For more on establishing a pricing structure, visit Step 2 of the Framework™
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Chapter 4: Establish a Pricing Structure 