The Power of Effective Price Structure Analysis
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
So which goals are most important for your new products? Revenue? Market share? Total profit? Profit margin? Customer lifetime value? Average revenue per unit? Something else? Whichever goals you choose, you cannot maximize all of them at the same time. In setting goals, you must make trade-offs. Here's an example: Assume you could sell your produc
... See moreGeorg Tacke • Monetizing Innovation: How Smart Companies Design the Product Around the Price
The price of a product is one of the most important decisions a company can make. LinkedIn's decision to bundle some seldom-used features as premium accounts generated an almost $250 million revenue stream. Startups often set their prices low to attract customers and never raise them again.
Sequoia Capital • Pricing Your Product
Pricing in the Modern World
sequencehq.com
A pricing strategy that takes into account the cost of sales helps overcome this problem. A cost of sales based method is an attractive start and a good basis for a pricing strategy.
Omar Mohout • Lean Pricing: Pricing Strategies for Startups (Hors collection)
