Your product's price isn't just a number.

Founders, your product's price isn't just a number. It is a measure of 𝘷𝘢𝘭𝘶𝘦 and it should determine your growth and acquisition strategy.

𝙋𝙡𝙚𝙖𝙨𝙚 𝙚𝙭𝙥𝙡𝙖𝙞𝙣...High-margin products can support more costly acquisition channels, while lower-margin ones require cost-effective strategies. This, of course, has a direct impact on your financials and therefore your acquisition plan.This is why it is so important to price your product 𝘳𝘪𝘨𝘩𝘵.

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𝗛𝗲𝗿𝗲 𝗶𝘀 𝗵𝗼𝘄 𝘁𝗼 𝗴𝗲𝘁 𝘀𝘁𝗮𝗿𝘁𝗲𝗱:

1. 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝗰𝗼𝘀𝘁: This is the basics. Understanding how much it costs to find, win and serve a customer is crucial and should be the first step in your pricing journey.

2. 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝘁𝗵𝗲 𝗽𝗲𝗿𝗰𝗲𝗶𝘃𝗲𝗱 𝘃𝗮𝗹𝘂𝗲 𝗼𝗳 𝘆𝗼𝘂𝗿 𝗽𝗿𝗼𝗱𝘂𝗰𝘁: The price you set should reflect the value your customers see in your product. If you haven't had value-based conversations with customers, what are you waiting for?

3. 𝗦𝘁𝗮𝗿𝘁 𝘀𝗲𝗲𝗶𝗻𝗴 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 𝗮𝘀 𝗮 𝘁𝗲𝘀𝘁𝗶𝗻𝗴 𝘁𝗼𝗼𝗹: When pitching your product to potential customers, don't be scared to bring pricing to the conversation. It will make these market validation conversations more real and insightful, helping you measure perceived value. 𝘏𝘦𝘳𝘦 𝘪𝘴 𝘢 𝘵𝘪𝘱: 𝘢𝘧𝘵𝘦𝘳 𝘺𝘰𝘶𝘳 𝘱𝘪𝘵𝘤𝘩/𝘥𝘦𝘮𝘰, 𝘢𝘴𝘬 𝘱𝘳𝘰𝘴𝘱𝘦𝘤𝘵𝘴 𝘵𝘰 𝘢𝘳𝘵𝘪𝘤𝘶𝘭𝘢𝘵𝘦 𝘵𝘩𝘦 𝘝𝘈𝘓𝘜𝘌 𝘣𝘢𝘤𝘬 𝘵𝘰 𝘺𝘰𝘶.

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𝙒𝙝𝙖𝙩 𝙞𝙛 𝙄 𝙜𝙚𝙩 𝙢𝙮 𝙥𝙧𝙞𝙘𝙞𝙣𝙜 𝙬𝙧𝙤𝙣𝙜? Oh... you will. And that is the point (𝘴𝘦𝘦 𝘢𝘣𝘰𝘷𝘦: 𝘵𝘦𝘴𝘵𝘪𝘯𝘨 𝘵𝘰𝘰𝘭). You'll have to go through different price points and pricing models until you get it (𝘢𝘭𝘮𝘰𝘴𝘵) right.

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Pricing should never be permanent. You should have a pricing strategy that aligns with your product roadmap - 𝑡ℎ𝑎𝑡 𝑖𝑠 𝑎 𝑝𝑜𝑠𝑡 𝑓𝑜𝑟 𝑎𝑛𝑜𝑡ℎ𝑒𝑟 𝑑𝑎𝑦.

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I sincerely hope this helps!
G