3 Lessons from Hyperinflationary Periods

Inflation is painful, for firms, customers, employees, and society. But careful study of periods of “hyperinflation” point to ways that firms can adapt. In particular, companies need to think about how to change prices regularly and cheaply — because constant price changes can ultimately be very, very expensive. And they should consider how to communicate those price changes to customers. Providing clarity and predictability can … [ Read more ]

Don’t Let Growth Hurt Your Margins: A 4-Step Pricing Framework to Build Products With Scalable Unit Economics

Price resets can create significant wins. But if minor changes in price cause massive fluctuations in output-KPIs, there’s a deeper problem: Your product is not working. 

The solution is to build a more diversified, customized product and pricing model — moving away from one-size-fits-all and towards granularity. By doing this, you won’t only improve your unit economics, but your product itself will become … [ Read more ]

Price Balance: Set, Get, Go

Business-to-business organizations have long grappled with setting the right prices-and yet, the payoff can be huge. Optimizing pricing can boost profits by 15 percent or more.

Ten Years’ Worth of Learnings About Pricing

Why do we set prices? Setting aside the important reasons of generating revenue and maintaining solvency for a business, there are many other reasons to set price. Price reinforces brand because price telegraphs whether a product is a premium product or a value product. Price differentiates products in the market and can be used as a go-to-market strategy. Underprice the competition to gain share. There … [ Read more ]

Madhavan Ramanujam

The root of all innovation evil is the failure to put the customer’s willingness to pay [WTP] for a new product at the very core of product design. Most companies postpone pricing decisions until after the product is developed. They embark on a long, costly journey of hoping they’ll make money rather than knowing they will. You can ensure your product not only stays alive, … [ Read more ]

Patrick Campbell

If pricing is adjusted on a regular basis, it trains your customers to understand that the value is going to be changing as the product is improving. The worst thing you can do is add so much value over the course of three to five years — even 12 months — and then all of a sudden want a big bump from your customers who … [ Read more ]

Patrick Campbell

Early on, many startups don’t want to show prices — and that’s okay. Most don’t really know what they should charge, so they prefer to get intel by asking inbound customers some pricing questions. However, when you reach a point where you want a touchless sale, then you need to show your pricing. If it’s not a clear number, such as in Wistia’s case, give … [ Read more ]

It’s Price Before Product. Period.

Madhavan Ramanujam is to monetization strategy what Bob Marley is to reggae music. He’s managed over 125 projects for companies ranging from hot startups to the Fortune 500. Drawing from his talk at First Round’s CEO Summit, Madhavan Ramanujam explains why pricing is so paramount from the get-go and the four ways companies often trip up when trying to monetize. He also shares the three … [ Read more ]

The Price is Right: Essential Tips for Nailing Your Pricing Strategy

Price Intelligently Co-founder and CEO Patrick Campbell has seen startups and multinationals alike labor to perfect products only to casually raise their finger to the wind when it comes to determining pricing. In this exclusive interview, Campbell deconstructs and walks through the elements of a pricing strategy to enable startups to more effectively acquire customers. The foundational work behind pricing is to create, test and … [ Read more ]

A Founder’s Guide to Product Pricing

Figuring out the right pricing for your startup is a challenging, yet crucial, part of building a successful company. The way you price your product can make or break your startup. So, it’s important to understand the pricing landscape of your market and how your company fits into it to get your startup’s pricing right.

Dreamit recently hosted an educational panel on startup pricing for the … [ Read more ]

What Is the Ideal Price of a Product?

How can you optimize the price of a product or service? Julián Villanueva, José Antonio Segarra and Iciar Ferrer outline the variables to keep in mind and explain how to tailor your pricing policy. For starters, remember that most buying decisions are far from rational, as they are influenced by certain psychological factors.

The Promise — and Perils — of Dynamic Pricing

Changes in technology and a greater acceptance of dynamic pricing among consumers are prompting more industries to consider deploying this type of pricing mechanism, even though the concept has been around for more than 30 years. This article highlights four types of dynamic pricing and three criteria to consider if using it.

Name Your Price. Really.

Is it worthwhile for retailers to experiment with “pay what you want” pricing? Shelle Santana unmasks the surprising logic behind how much customers will pay, and when. One finding: sellers can dramatically change what some buyers are willing to pay.

A Refresher on Price Elasticity

Setting the right price for your product or service is hard. In fact, determining price is one of the toughest things a marketer has to do, in large part because it has such a big impact on the company’s bottom line. One of the critical elements of pricing is understanding what economists call price elasticity. To better understand this concept and how it impacts marketing, … [ Read more ]

8 Reasons Companies Don’t Capture More Value

Doesn’t every business want to maximize its profits? Pricing textbooks certainly all assume they do, or at least that they want to achieve a certain profit level under given constraints. But in truth businesses rarely focus on only profitability; most strive to satisfy various stakeholders and meet the goals of balanced scorecards. And even when a company is focused tightly on financial performance, there are … [ Read more ]