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:
- Product Pricing Properties – Price based on value and align it so that as the customer gets more value, they pay a corresponding amount
- Product Pricing Doesn’t Matter Pre Product/Market Fit – Charge something, even if it’s small, so as to get higher quality feedback
- Published Prices Aren’t Always the Main Business Model – Consider potential indirect ways to make money that aren’t as obvious
- Pardot’s Pricing Progression Through the Years – Read a case study to see how pricing evolved over five years
Pricing should be treated like everything else in the startup: an iterative element that warrants regular experimentation and improvement.
What else? What are some more good resources on product pricing?
David Cummings on Startups 