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How To Use Subscription Pricing Effectively
If you understand buying a new pair of running shoes, you can figure out how to price your product
Pricing a new product is difficult, but it’s not rocket science. It’s just one of those tasks where entrepreneurs throw roadblocks into their own way.
It’s difficult enough to figure out a price point that delights your customer while still generating a profit. When you throw a bunch of extra assumptions into the price calculation, like a lot of startup leaders do, you wind up creating some unwieldy arithmetic pretty quickly.
I like math. I don’t like when math gets in the way of closing sales.
I get called in a lot to help startups with their pricing — either to help set the initial pricing or to fix pricing that isn’t working. When I review what they’ve done, I usually have to untangle a Gordian knot of pre-conditions, assumptions, and expectations that just don’t need to be part of the equation.
Misplaced Assumptions Always Lead to Unnecessary Questions
This past week, I answered a couple questions about pricing a new type of product for an existing market. The founder had developed a new way to do business and was trying to compete against…
