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"Your goal = prove that the product can be sold" Noooo! This makes it sound like you can start with a pricing model that is way off and change it later. When y

"Your goal = prove that the product can be sold" Noooo! This makes it sound like you can start with a pricing model that is way off and change it later. When you change it, you better be charging for something different, or customers will be pissed. Netflix is perfect example. Great service, great product, and then they lost a lot of customer when they said, "Instead of paying A and getting X and Y, we're only going to give you X for A, and you can pay B for Y." If you do change pricing, you need to change the product package in a way the customer can justify.

sudonim 14y ago
You can. We did. We improved the product and charged new people a higher price while keeping early customers at their old price. Netflix was way past this point when they changed their pricing model. I believe what they're advocating is to prove people will pay -- doesn't matter how much. Using strategies like grandfathering people into a plan you can avoid making customers upset in the way netflix did.