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Monday, October 04, 2004
InfoCommerce 2004: Parameters for Profitable Pricing
The core message from the Pricing session is that it is possible to differentiate raw content through value added features and package the same content for different audiences using very different business models--from a free, advertising-supported model to a premium subscription model.

W3Data demonstrates how the same database can be provided for free on the Web and also packaged as a value-added solution to corporate customers and sold on a subscription basis. Max Bardon, the CEO of W3Data, described how value is added via integration tools and software that are packaged as solutions to specific business workflow problems.

Paul Murphy, CEO of Eagle Eye Publishers, attributes his company's success to its attention to client needs. They add context to the government contracts data through historical analyses, categorizing the data and helping customers mine the data to "find the answers" they need to procure contracts or better compete in their segment.

Kathy Greenler Sexton, CMO of HighBeam Research, described how they have studied their audience in order to understand how various segments use HighBeam's service. After identifying their highest value segment, they have been able to further study the needs and pricing sensitivities of the target customers. HighBeam uses the interactive features of the Web to gather real-time feedback on design, product features, and pricing options.

All three panelists emphasized the importance of understanding the needs of your target segment so that you can add value to raw data via tools, analysis, insight, and consulting services to offer a premium product that solves a problem faced by that segment.

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