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This is a great check on your product plans-- for example, it will catch you trying to sell things for $20 when you can't make money at that price. When I think
by reubenswartz 15y ago
This is a great check on your product plans-- for example, it will catch you trying to sell things for $20 when you can't make money at that price. When I think of "pricing in reverse", I think customer -> problem -> value -> price -> price -> cost. Check cost at the end. Most people think cost -> product -> price -> value -> problem -> customer. This leads to poor solutions and bad pricing. As Nate notes, using his method allows him to realize that he needs to create more value.