Where Einstein Meets Edison

Four Missing Steps to Pricing Like a Pro

Four Missing Steps to Pricing Like a Pro

Mar 29, 2011

“Nowadays people know the price of everything and the value of nothing.”    – Oscar Wilde Too often startups take a dangerous route to setting price: just looking at how much it costs to make and how much competitors are charging, and then setting the price in between.  The ambitious may even include “willingness to pay” to...

Three Failures of Willingness to Pay

Three Failures of Willingness to Pay

Feb 14, 2011

Pricing is an important issue that needs to be considered early and often in start-up companies (if you’re not with us, see the previous post When Should I Think about Price?).  But when it comes time to hit the ground with it, many entrepreneurs make a critical mistake: conducting a willingness to pay survey.  The survey may be easy to do and...

When Should I Think About Price?

When Should I Think About Price?

Dec 14, 2010

A few years ago, I worked with a product manager for a medical device company who had a burning question for me.  His game-changing product was ready to go, the sales force was lined up and beginning to make contacts with customers, and his CEO was expecting this to be a $100 M product.  He now just needed to slap a price on it, and wanted to know what...