We’re considering an unconventional pricing metric that isn’t commonly used in our sector. Will using a non-standard metric confuse potential customers, or could it help us communicate our value in a way that sets us apart from competitors?

Using an unconventional pricing metric can indeed differentiate your offering, provided you clearly communicate its connection to the value your product delivers. In our book, Price to Scale, we emphasize that the choice of pricing metric should ideally be tied directly to the benefits or value a prospect receives. This direct connection not only makes the customer's decision easier but can also highlight your unique value proposition – setting you apart from competitors.

Here are a few key points drawn from Price to Scale:

• Value Connection: A well-chosen metric that reflects actual usage or benefits can lead to easier client adoption. If your non-standard metric aligns closely with how your customers consume value, it might actually enhance understanding rather than confuse them.

• Customer Familiarity: The book also stresses the importance of recognizing what your customers are accustomed to. If you’re moving away from a well-known standard, it’s crucial to educate potential customers on how this new metric better correlates with the value they receive.

• Clear Anchoring: When introducing any non-standard metric, anchoring it with industry-standard assumptions or benchmarks (as discussed in Price to Scale) can help bridge any initial comprehension gaps. This involves using relatable examples or logical conversions that help customers immediately grasp its relevance.

In summary, while there is a potential risk of confusion with any unconventional approach, if the metric is clearly tied to demonstrable value and is well-anchored to what your customers understand, it can serve as a powerful differentiator. The key is to ensure that your communications and onboarding strategies effectively educate your target market on why this metric matters to them.