Pricing It Right: A Startup’s Key to Success in Commercialisation

value-led approach to pricing

At NovAzure, we love to help Startup enter and grow in the market fast. One popular topic which is will hit ALL Startups sooner or later is pricing: we’ve all heard the saying, “Price is what you pay, and value is what you get.” In the world of start-ups, getting pricing wrong can prove to be a costly mistake. Think on this: at a 25% gross margin, a selling price reduction of 15% will necessitate an astounding 150% increase in volume just to recover the lost gross margin!


Your Pricing Dilemma: Solved

One of the most common queries that we field from start-ups beginning their commercialisation and scale-ups seeking our hands-on support and advice is, “How should I go about pricing?” Whilst many are aware of the pitfalls of the ‘cost-plus’ approach, they often struggle to understand how to link prices to value in order to find the ideal price point. That’s where we at NovAzure come in.


The NovAzure Value-Led Approach (VLA)

Our leading consultants, Phil and Chris, recently had an insightful overview session with some of the Advanced Propulsion Centre’s TDAP cohort members. The cohort innovators, at the dawn of their commercialisation journey, wanted to learn more about the ‘cost-plus’ pitfalls and how to successfully apply a value-led approach.  In answering their insightful questions and delving into some discussion, we explored how the Value-Led Approach could help these start-ups to maximise returns on their Intellectual Property (IP).


VLA: Maximising Returns On Your IP

The NovAzure Value-Led Approach (VLA) is a holistic concept where the pricing component needs to be aligned with other key Go-2-Market pillars to create value for customers.  Instead of just tallying up the total costs of production, selling, etc. and then adding a profit margin to derive a price, VLA starts by deriving an understanding of how your product/ service creates value for your customers.  Delivering the right offers to maximise that value creation for customers enables setting prices that reflect a share of that value. This  NovAzure VLA approach can lead to improved margins, deeper market penetration and a larger market share.

Each application of the VLA approach will be tailored – based on an offer’s Unique Selling Points, the marketplace and the business plan you are aiming to deliver.  We are always pleased to have a one-on-one discussion with innovators who feel ready to explore how the VLA could help them to maximise returns on their IP. Our thanks go to the entire TDAP team from the APC, especially Silpa Shaji and Tafadzwa Motsi , for their support to setup these sessions.


Pricing? Talk to Novazure Today

If you’re actively entering or scaling a commercialisation phase and you don’t want to walk into the trap of selling your winning Intellectual Property too cheaply, then reach out to Phil Cholerton, at or Christopher Gruen, at to learn more about the NovAzure Value-Led Approach.  We’re here to help you to navigate the tricky waters of assessing value and pricing to support your start-up’s sustainable growth. Talk to us and let’s start your journey to pricing it right.


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