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In this episode, our special guest Patrick Campbell, Co-Founder and CEO at Price Intelligently, discusses the hardest parts of pricing products for startup CEOS, the fears associated with not making a sales because of price, his survey method for identifying the price prospects are willing to pay for your product, and how to deal with raising a product’s price and the associated retention drop off. Key areas covered:
- Understanding that pricing is a process that needs to be revisited regularly and how to avoid common mistakes startups make when pricing their products.
- Establishing value metrics for your product to help make clear to current clients and future prospects the worth of your product and potential price increases as you continue to develop your product.
- How to survey clients and prospects with four simple questions to discover what your product is actually worth to your market.
- Methods of retaining customers and avoiding harmful churn when raising your product price points as you build out your product.
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Podcast Notes
03:26 – The hardest thing for companies to learn about pricing their products.
08:50 – How does an entrepreneur deal with the fear of not wanting to blow a deal?
11:56 – Always make sure that your price increase is worth it.
14:50 – Guidepost suggestions to try.
16:10 – Four main questions recommended to ask.
24:00 – Finding the value metric and making sure reinforce value with your price.
25:10 – How to handle customers who are used to pay per user and how to overcome that bureaucratic barrier.
31:20 – How would you recommend handling that price question when it’s too early to actually give a price?
39:30 – Recognizing the problem children.
42:00 – Handling a price range that’s large.
43:20 – When you’re better off charging more than trying to charge less.
48:30 – Should your price be exactly 100 or can it be 99?
Resources mentioned or related to this podcast
- Price Intelligently: Price Optimization Software.
- Price Intelligently, Blog
- Aytm.com Ask Your Target Market, Online market research.
- Profitwell, Financial metrics for your subscription business.
- Wildbit – We create web products to help business