You’re more or less OK it seems. But to be a unicorn you need exceptional pricing.
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How others fared?
Check out how others answered! Below you will also find the interpretation for our questions: a brief summary of every question.
- Pricing is a tool to achieve your business objectives. If you are clear on where you want to get, pricing will make the journey smother.
- The competition-based approach uses competition prices as a benchmark. The advantage of this method is speed – after a short analysis of competitors’ websites and with enough information about prices and packages, you can quickly create a “pricing strategy”. In addition, it is unlikely that your prices will be overshoot if we set them in the middle of the observation. You should rather avoid that your product can be directly comparable to the other solutions as for your customer it will be just pricing driver to switch to another provider and this lead to a constant price decrease. There are many ways for differentiation such as; additional features, customer support, add-on services such as consulting etc.
- This is what pricing is all about. Capturing entire willingness to pay for your product/service
- If you apply price elasticity you know what will happen with your revenues if you increase or decrease your price.
- Right pricing model offers versions at multiple price points. While your most expensive model/plan represents what you aspires to, customers will value features differently and some who don’t see the value in that high-end version might be willing to pay less for a stripped-down model.
- The key to finding best pricing metric is simple: the better you understand your market and customers the easier it will be to create an offering that they perceive to be high value, meaning more revenue and profit for you..
- Some startups make pricing so complex that even the team doesn’t get it. Pricing plans should be as simple and easy to understand as possible
- This one is about value argumentation. You and your team must be able to answer key Customer question “what’s in it for me? Why should I pay for that?”
- Startups spend way to little time on pricing analytics. Pricing is about numbers. If you don’t measure pricing, you can’t improve it.
- Some startups think it’s enough to track churn and LTV/CAC. It’s not.
- We see too often that there’s too much flexibility in pricing. Lack of discount consistency, too many special prices etc.
- Pricing is a process. And there should be repeatable cycles of review and updates
About Movens Capital
Movens VC is an early stage fund (Seed/Series A), that supports the most ambitious CEE founders in the first steps of building European and global technology diamonds. We want to focus on businesses that will revolutionize traditionally large industries mainly through the use of machine learning and artificial intelligence in process automation.
Learn more about our investment strategy: https://movenscapital.com/move
Meet the hosts
- 15 years of business experience
- Experience with multinational companies
- Expert in marketing
- Guru in pricing strategies
- Built a company and sold it to PwC
- Stanford MBA lecturer in pricing, PhD
- TED speaker with +100k views
- Angel investor (4 investments, 1 exit)
- 20+ years of experience in performance improvement
- International expert in Pricing & Revenue Management
- Delivered solutions in multiple countries on 5 continents
- Headed Pricing Solution for Global $14B corporation
- Real estate investor
- Lecturer at International MBA