18. Do you need a liter of paint or a painted room? On new pricing measures

An interesting phenomenon observed recently is the shift in pricing measures. This involves moving away from standard units (e.g., price per liter of paint) and offering products in other units, such as the price per m² of painted wall.

This approach has the following advantages:

- We do not compete on the price per quantity of product but on the price per effect — previously the customer compared price per liter to price per liter. In this approach, they compare price per liter to price per m² of painted wall;
- We demonstrate product quality — when presenting the price, we also show how high-quality the product is. With the “price per liter” approach, we lose in the customer’s eyes if our product is more efficient and therefore often more expensive;
- We offer exactly what the customer wants — the average paint buyer wants a specific wall area painted, not to know how many liters of paint are needed.

Referring to the last point, one of the largest companies in the lighting industry took it a step further. In the B2B sector, they began offering not just light bulbs, but a service that ensures a building is always properly lit. This way, the customer does not have to worry about what kind of bulbs they need but gets exactly what they want — a well-lit interior.

A similar approach is offered by Hilti, a manufacturer of power tools. In this case, the customer pays to have a set of functioning tools for work. The manufacturer supplies the appropriate tools, services them, and adapts them to technological changes. Any battery replacements or deliveries of new tools are handled by the supplier. The customer pays a fixed fee and does not have to worry about tool inspections or unexpected costs related to the equipment¹.

In summary, it is worth considering whether there is an alternative way to present a price that highlights your competitive advantage and emphasizes product quality. Sometimes traditional pricing schemes are not the most accessible for the customer, which makes their decision more difficult.

You can also analyze whether it is possible to bundle the product in an alternative form, offering exactly what the customer needs, rather than intermediary products (a lit house instead of light bulbs). As we know from the lesson on one-time flat fees, customers are willing to pay more for the certainty that they will not be surprised by additional charges.

[1] Simon, 2015, Pricing Man