Sustaining a start-up in the digital economy is a delicate balancing act that requires taking into account the perspectives of a variety of stakeholders, including customers, suppliers, shareholders, investors, competitors, government and other entities. The goal of a start-up executive should be to create a business model that attains a stable state between all of these dimensions and adapts to changing times. Pricing strategy requires a similar balance between three primary elements: the business objectives of the start-up, how much a customer is willing to pay for the value delivered, and how much a supplier is willing to pay. Pricing that has been added as a feature to a start-up business plan after the fact, without taking into account what the customers are willing to pay for, may lead to a failed business. But a pricing strategy that is acceptable to customers and also meets business plan expectations is the cornerstone to a start-up’s success in the digital economy.
Click to Add the First »