Recently I was talking to an entrepreneur and I asked about his typical customer, sales cycle, and price point. Immediately, his eyes lit up and he talked about how he only wants to sell large deals — deals that are at least six figures, preferably mid-six figures. I drilled in further and learned as much as I could. Then, it dawned of me: entrepreneurs need to build products that have a price point inline with their personality style.
Here are a few thoughts on product price points and personality styles:
- Some entrepreneurs want to be out hunting whales and on the front line with the sales team, thus a very high product price point makes sense
- Some entrepreneurs want to have a large number of customers and employ an inside sales team with customer interaction over the phone, thus a moderate price point makes sense (typical for Software-as-a-Service products)
- Some entrepreneurs want a completely self-service sales process and product, thus a freemium model or easy-to-get started product makes sense
When evaluating business models, entrepreneurs would do well to take into account their own personality styles and the ideal product price point. Product price point drives a great deal of how the business works.
What else? What are some more thoughts on product price point personality parity?