Do not talk about pricing
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Do not talk about pricing
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Re: Do not talk about pricing
#2The most surprising thing I learned from this is that even juxtaposing two options will help you get higher pricing. When thinking of product and service pricing, for me it's difficult to invent three different options sometimes, so it's relieving to know that I could create just two and it will get me most of the way there.
It is also crazy to think how relational it all is. I don't really need that extra $7 beer at the bar, "but who cares, we're having fun". Whereas paying $8 a month to the New York Times took me months and months to decide on because I wasn't used to paying for it, even though I'd been a reader for years.
It really is a mostly emotional decision.
Re: Do not talk about pricing
#3The most surprising thing I learned from this is that even juxtaposing two options will help you get higher pricing. When thinking of product and service pricing, for me it's difficult to invent three different options sometimes, so it's relieving to know that I could create just two and it will get me most of the way there. It is also crazy to think how relational it all is. I don't really need that extra $7 beer at…
For me, the thing is that you're buying one beer for $7 one time, not "beer in perpetuity, or until you remember to change your mind".
Re: Do not talk about pricing
#4The most surprising thing I learned from this is that even juxtaposing two options will help you get higher pricing. When thinking of product and service pricing, for me it's difficult to invent three different options sometimes, so it's relieving to know that I could create just two and it will get me most of the way there. It is also crazy to think how relational it all is. I don't really need that extra $7 beer at…
Tangible objects provide a higher sense of gratification, I suppose. $10-15 USD for a single, one-time, movie ticket or $1-5 dollars for a phone application.
And then there's the whole micro payment economy which is another thing.
Re: Do not talk about pricing
#5The most surprising thing I learned from this is that even juxtaposing two options will help you get higher pricing. When thinking of product and service pricing, for me it's difficult to invent three different options sometimes, so it's relieving to know that I could create just two and it will get me most of the way there. It is also crazy to think how relational it all is. I don't really need that extra $7 beer at…
For me, the thing is that you're buying one beer for $7 one time, not "beer in perpetuity, or until you remember to change your mind".
"You'll be back." - Beer
Re: Do not talk about pricing
#6> “It is not your customer’s job to set pricing. An optimal price is one that is accepted but not without some initial resistance” says Ash Mauyra explains in this great piece.
I can imagine this as general purpose advice but this is no way to build a loyal base. There are some services that I have that I begrudgingly pay for because they price so aggressively that they extract nearly all of the value from my subscription, and then there are services that I'm actually happy to pay the bill because it's such good value. Guess which services I recommend to others, and which services I actively look for alternatives for?
Re: Do not talk about pricing
#7Reminds me how we assign points to tasks in an agile sprit. It takes practice and it helps to have small tasks in relation to which we assign points to the larger ones.
Re: Do not talk about pricing
#8> “It is not your customer’s job to set pricing. An optimal price is one that is accepted but not without some initial resistance” says Ash Mauyra explains in this great piece. I can imagine this as general purpose advice but this is no way to build a loyal base. There are some services that I have that I begrudgingly pay for because they price so aggressively that they extract nearly all of the value from my subscri…
Ideally a user should get at least 10x the value than what they paid.
When pricing, I try to go for a price that people pay, but with resistance from X% of leads. Then you can give some/many of them limited-time discounts, which nudges them over the edge.
If you don't price high enough, you don't have room to do that. If you don't have resistance, you have no-one to do it for.
And people are MUCH more likely to buy when there's a time limit and they might lose something if they wait too long.
Re: Do not talk about pricing
#9> “It is not your customer’s job to set pricing. An optimal price is one that is accepted but not without some initial resistance” says Ash Mauyra explains in this great piece. I can imagine this as general purpose advice but this is no way to build a loyal base. There are some services that I have that I begrudgingly pay for because they price so aggressively that they extract nearly all of the value from my subscri…
One of the first thing you learn in microeconomics 101 is that demand forms a curve - there will always be people who are extracting more value (and thus willing to pay more) for something, and people who don't (and thus don't buy it). Neither of those groups matter - the only ones that do are the people at the margin - if lose a less than proportional amount of customers by charging more, then you still come out on top. This is also what the quote is alluding to.
Re: Do not talk about pricing
#10The most surprising thing I learned from this is that even juxtaposing two options will help you get higher pricing. When thinking of product and service pricing, for me it's difficult to invent three different options sometimes, so it's relieving to know that I could create just two and it will get me most of the way there. It is also crazy to think how relational it all is. I don't really need that extra $7 beer at…
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