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(Worked many years in product pricing for startup to IPO company) To even begin on a baseline of how you're going to price a product, you need to understand th
by bxtt 10y ago
(Worked many years in product pricing for startup to IPO company)
To even begin on a baseline of how you're going to price a product, you need to understand the unit economics of your product. I think too many people fall into the economics trap and apply a theoretical approach into revenue management, when in reality it's more about understanding your business model, how you expect to grow, and the finances; then you apply economic models.
Understanding the financial aspect will allow to create at least a cost based pricing model or margin based pricing; from there it can grow into a value based model where you figure out the value proposition for each customer/market segmentation.
But, obviously all of this is developed mid-stage, and early stage just figure out what gets the customers in the door.
There are a lot of good resources online about this subject.