Saved by Mo Shafieeha and
Pricing Your Product
Cost-based pricing is where you estimate what it costs you to deliver your product and then slap a modest margin on top of that. This approach usually leaves uncaptured value (money) on the table. I asked Joe to think about raising prices this way: If you could double your pricing, and not lose more than half your customers, you would still come ou
... See moreAsh Maurya • Scaling Lean
Common wisdom is that you price your product in terms of value to the customer rather than cost to you.
Rob Fitzpatrick • The Mom Test: How to talk to customers & learn if your business is a good idea when everyone is lying to you
Pricing is hard. In the early days, you may be tempted to give your product away for free or to charge less than the value of your time or the raw materials you used. Don’t. In order to stay alive, you need to make money.
Sahil Lavingia • The Minimalist Entrepreneur: How Great Founders Do More with Less
software firm offered cloud software for businesses at an extremely low monthly fee of $19.90 per workstation. The price for the comparable competitive product stood at more than $100. Several months after the launch, the company’s CEO told me that “small businesses are really excited about our prices. For the first time, they can afford this kind
... See moreHermann Simon • Confessions of the Pricing Man: How Price Affects Everything
Joe’s story is not atypical. Most entrepreneurs price their products like artists. They struggle to place a fair value on their product and fall back on a cost-based pricing approach like Joe did. A more effective approach is thinking in terms of value-based pricing in which you anchor your pricing not against your cost structure but against the po
... See moreAsh Maurya • Scaling Lean
If you were forced to increase your prices by 10x, what would you have to do to justify it?
What sort of brand looks and feels like something that expensive? What positioning would you take? How would the design of both the website and the product need to change?