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Pricing Your Product
21–30 of 82 posts
Re: Pricing Your Product
#22How ironic given that it's biggest winners in its portfolio are companies that never sold anything (at least not initially), Linkedin and Instagram for example.
Re: Pricing Your Product
#23Re: Pricing Your Product
#24Value-based pricing is the worst societal invention. Imagine a medicine can be made from simple ingredients, but you discovered a recipe by accident. It's very valuable since it might save lives, so the value is high, the cost is low and you can reap the benefit on the mere basis that you discovered something by accident. You also need to make sure that no one "gets it", so do not educate people, just milk them - and in the worst case, mislead them, work against any threat "knowledge" would pose.
Mundus vult decipi, ergo decipiatur.
Imagine a world, where progress and invention would be something shared and done not out of greed but out of ability and ultimately generosity that would add to the grace of our race.
Instead we celebrate greed, as if we were a bunch of apes.
My fear is that human society needs to reach new lows before we actually have the chance to see our own potential (and then it might be too late, anyway).
Re: Pricing Your Product
#25The article hits its stride at paragraph 14, where they talk about the importance of "value-based pricing" rather than "cost-based pricing." My wake-up moment came in 2013 or so, when I was pricing the digital version of a long-ago print book I'd written. ("Merchants of Debt"). I knew that it kept finding a niche audience among investment bankers and people who want to be investment bankers. E-book prices were droppi…
I fall for this time and again.
I want to buy a board game. I've already decided I'm buying it but hey there is a deluxe version for a price I wasn't planning to pay... so yeah I buy it.
Re: Pricing Your Product
#26How ironic given that it's biggest winners in its portfolio are companies that never sold anything (at least not initially), Linkedin and Instagram for example.
The article seems to indicate that Linked In has made a lot of money selling services.
Re: Pricing Your Product
#27Value-based pricing is the worst societal invention. Imagine a medicine can be made from simple ingredients, but you discovered a recipe by accident. It's very valuable since it might save lives, so the value is high, the cost is low and you can reap the benefit on the mere basis that you discovered something by accident. You also need to make sure that no one "gets it", so do not educate people, just milk them - and…
There are consequences to an economy where the margin is fixed across all industry... just look at the free internet... since the you basically get paid for eyeballs, with no premium for providing more value (a visitor gives you the same per user price for ads no matter the quality of the content), there is a race for cheap content that appeals to the most number of people... you don't get investment in companies that provide high value, because you don't get more return for high value.
Re: Pricing Your Product
#28Value-based pricing is the worst societal invention. Imagine a medicine can be made from simple ingredients, but you discovered a recipe by accident. It's very valuable since it might save lives, so the value is high, the cost is low and you can reap the benefit on the mere basis that you discovered something by accident. You also need to make sure that no one "gets it", so do not educate people, just milk them - and…
Supply and demand dynamics =/= invention, but rather description.
Re: Pricing Your Product
#29My problem with this advice of testing your pricing strategy is how to communicate this to actual customers. Maybe this isn't a thing in Europe or USA; but in third-world countries a change in the price it is important and something your customers want to know.
If I set my prices higher, I can't change it for my current customers. They will get mad. So I ahve to create a full logic on the backend for customers created after X date, etc. It is a mess.
If I set my prices lower (i.e., display lower prices on landing page, etc), my current customers will get mad at me if I don't change them for them too ("Why I am paying more than the price you are saying this costs?"), etc.
So for me, this strategy of A/B testing prices, find the right price, etc, has been always too complicated to implement. When I tried, I end up adding more problems to me to deal with, and at the end I couldn't analyze the trends I wanted it.
Re: Pricing Your Product
#30Value-based pricing is the worst societal invention. Imagine a medicine can be made from simple ingredients, but you discovered a recipe by accident. It's very valuable since it might save lives, so the value is high, the cost is low and you can reap the benefit on the mere basis that you discovered something by accident. You also need to make sure that no one "gets it", so do not educate people, just milk them - and…
Supply and demand dynamics =/= invention, but rather description.
I understand the price signal and the process of price detection through the myriads of needs and abilities. That's all fine and actually great, as a relatively robust distributed system.
What I do not get is why keeping people in the dark is a cornerstone to many endeavours - value-based pricing just being an example of that.
Edit: maybe I spend too much time in the open source world and mistake it for some model setup for other parts of society that do not work like that at all.