Quick Thoughts on Product Pricing

One thing to remember about product pricing is that value and costs are separate things. You can sell a very great margin if you provide value to the customer. And you can lose money because eve though your price was low, people did not perceive the value as being worth the price.

David Cummings on Startups

Earlier today an entrepreneur asked about thoughts on product pricing. I’ve found that product pricing evolves over the life of the startup based on a number of factors including competitive dynamics, target markets, corporate strategy, and overall value to the customer. Here are a few more specific ideas around pricing:

Pricing should be treated like everything else in the startup: an iterative element that warrants regular experimentation and improvement.


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