Product Management Pricing Guide: Streamline Your Invoicing and Get Paid Faster
Discover the essential pricing strategies for product managers to prevent scope creep, manage client expectations, and increase revenue. Learn how to create a pricing guide that works for you.
You've invested hours in defining a product roadmap, only to have a client request an unexpected feature change at the last minute. You've lost valuable development time and resources. This is just one of the many challenges product managers face when it comes to pricing and invoicing. In this guide, we'll show you how to create a pricing strategy that prevents scope creep, manages client expectations, and increases revenue.
Why this keeps happening
Product managers often struggle with pricing and invoicing due to a lack of clear scope definition, inadequate communication with clients, and inefficient invoicing processes. This can lead to scope creep, delayed payments, and lost revenue.
Real example
Meet Emily, a product manager who recently experienced a scope creep nightmare. She spent weeks developing a custom feature for a client, only to have them request a major overhaul at the last minute. Emily had to redo the entire project, losing valuable time and resources. She ended up losing $10,000 in revenue due to the scope creep.
The habits that fix this permanently
These are the non-negotiables for getting paid reliably in your profession:
How to implement this step by step
Define Your Pricing Strategy
Start by identifying your costs, including development time, resources, and overheads. Research your competitors to determine a fair market price for your product. Consider offering tiered pricing or a custom pricing model to accommodate different client needs. For example, Emily could have created a tiered pricing model that offered different levels of customization based on the client's budget.
Create a Pricing Guide
Develop a pricing guide that outlines the different pricing tiers and features for each tier. Include a clear description of each feature and the associated price. This will help clients understand what they're getting and make informed decisions. For example, Emily could have created a pricing guide that outlined three tiers: basic, premium, and enterprise. Each tier would have included a different set of features and a corresponding price.
Establish a Payment Schedule
Develop a payment schedule that aligns with the project milestones to ensure timely payments. This could include a deposit upfront, a payment at the midpoint, and a final payment upon completion. For example, Emily could have required a 50% deposit upfront, 25% at the midpoint, and 25% upon completion.
Use a Contract Management Tool
Use a contract management tool to automate the contract review and approval process. This will help ensure that all contracts are reviewed and approved before the project begins. For example, Emily could have used a contract management tool to automate the contract review process, ensuring that all contracts were reviewed and approved before the project began.
Implement a Payment Tracking System
Implement a payment tracking system to monitor client payments and send reminders when necessary. This will help ensure that payments are made on time and reduce the risk of late payments. For example, Emily could have used a payment tracking system to monitor client payments and send reminders when necessary, reducing the risk of late payments.
The Becflow solution
Becflow offers a comprehensive contract management and invoicing platform that helps product managers like Emily streamline their pricing and invoicing processes. With our AI-powered contracts, payment links, and automatic reminders, you can create a pricing strategy that prevents scope creep, manages client expectations, and increases revenue. Try Becflow today and start getting paid faster.
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