Why is pricing difficult for startups?
Pricing is difficult for startups because they often undercharge due to underestimating costs, not understanding their value, and focusing on the wrong customers.
What is the pricing thermometer concept?
The pricing thermometer concept helps to understand the relationship between cost, price, and value, and how to optimize pricing for maximum business impact.
How can pricing affect acquisition strategy?
Pricing affects acquisition strategy as a 1% increase in effort can result in a 3.32% return on acquisition and retention.
What are the common mistakes to avoid when pricing?
When pricing, it is important to avoid four common mistakes: underestimating costs, not understanding value, focusing on the wrong customers, and undercharging.
How can startups optimize prices?
Startups can optimize prices by trying different price points and analyzing the effect on conversion rate, sales volume, and revenue generated to determine the best balance.