ย 
Search
  • Benjamin

๐—ฃ๐—ฟ๐—ถ๐—ฐ๐—ถ๐—ป๐—ด ๐—ง๐—ถ๐—ฝ๐˜€

In the legend of Icarus, his father creates wings to escape and warns him to not fly too high or too low. Sadly, he plunges from the sky.*


In the reality of startup sales, if you price too high then customers wonโ€™t buy, but price too low and the business wonโ€™t grow.


๐˜๐˜ฐ๐˜ธ ๐˜ฅ๐˜ฐ ๐˜ง๐˜ฐ๐˜ถ๐˜ฏ๐˜ฅ๐˜ฆ๐˜ณ๐˜ด ๐˜ข๐˜ท๐˜ฐ๐˜ช๐˜ฅ ๐˜ง๐˜ข๐˜ญ๐˜ญ๐˜ช๐˜ฏ๐˜จ ๐˜ต๐˜ฐ ๐˜ต๐˜ฉ๐˜ฆ ๐˜จ๐˜ณ๐˜ฐ๐˜ถ๐˜ฏ๐˜ฅ?


๐—–๐—ผ๐˜€๐˜๐˜€ โ€“ Calculate the COGS, salaries, R&D, overhead, and debt servicing to know what you need. Use this to set minimums.


๐—ฉ๐—ฎ๐—น๐˜‚๐—ฒ โ€“ Define price in terms of value and how customers can better operate and grow business. Use this to set maximums.


๐—ง๐—ถ๐—ฒ๐—ฟ๐˜€ โ€“ Set tiers of prices (e.g. basis, plus, and premium options) to attract both price and value-driven clients.


๐—–๐—ต๐—ผ๐—ถ๐—ฐ๐—ฒ โ€“ Offer a selection of different products, features, and/or services at different prices allows customers to confidently decide.


๐—ข๐—ฑ๐—ฑ ๐—ก๐˜‚๐—บ๐—ฏ๐—ฒ๐—ฟ๐˜€ โ€“ Recognize that while $9.99 is essentially $10, research shows that lowering price just a little has a huge impact.**


Pricing is both science and art. Avoid the fate of Icarus by soaring at the perfect height.


๐˜›๐˜ฉ๐˜ช๐˜ด ๐˜ช๐˜ด ๐˜ต๐˜ฉ๐˜ฆ ๐˜ง๐˜ช๐˜ณ๐˜ด๐˜ต ๐˜ฐ๐˜ง ๐˜ข ๐˜ต๐˜ธ๐˜ฐ-๐˜ฑ๐˜ข๐˜ณ๐˜ต ๐˜ด๐˜ฆ๐˜ณ๐˜ช๐˜ฆ๐˜ด ๐˜ฅ๐˜ช๐˜ด๐˜ค๐˜ถ๐˜ด๐˜ด๐˜ช๐˜ฏ๐˜จ ๐˜ช๐˜ฅ๐˜ฆ๐˜ข๐˜ด ๐˜ฐ๐˜ฏ ๐˜ฑ๐˜ณ๐˜ช๐˜ค๐˜ช๐˜ฏ๐˜จ. ๐˜š๐˜ฆ๐˜ฆ ๐˜—๐˜ณ๐˜ช๐˜ค๐˜ช๐˜ฏ๐˜จ ๐˜๐˜ฏ๐˜ฏ๐˜ฐ๐˜ท๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ฑ๐˜ฐ๐˜ด๐˜ต ๐˜ง๐˜ฐ๐˜ณ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ฐ๐˜ต๐˜ฉ๐˜ฆ๐˜ณ ๐˜ฑ๐˜ข๐˜ณ๐˜ต.


--------------------------------


* In Greek mythology, Icarus and Daedalus attempt to escape from Crete with wings that Daedalus constructed from feathers and wax. Daedalus warns Icarus to not fly too low, lest the sea's dampness clog his wings, nor too high, lest the sun's heat melt the wax. But Icarus flies too close to the sun and he tumbles from the sky. https://en.wikipedia.org/wiki/Icarus


** According to a study conducted by Kenneth J. Wisniewski from the University of Chicago, when the price of margarine dropped from 71 cents at a local grocery chain to 69 cents, sales jumped by an astounding 222%! Two pennies are worth a lot. http://bit.ly/2OGoAcs


Photo by Fabio Brocceri who can be found here: https://www.facebook.com/fabiobrocceri.it



88 views0 comments
ย