Publication number: ELQ-97656-1
View all versions & Certificate
Guidance on setting a price for your product with downloadable pricing worksheet and explanatory article.
Deciding on a price for your product is one of the biggest and most important things you'll have to do. It is too common for this to be treated like an activity of secondary importance. Startups particularly commonly start their pricing very low to bring in their first wave of customers, but then they'll not change it again. Another common mistake is charging nothing for a certain feature at the start, but not charging for it after it's obvious that people would pay.
Thinking more thoroughly about your pricing can really help your company make (more) profit, enhance customer experience, and aid research to find better variations you hadn't yet thought about.
Theoretically, you could use rational economics to set a price, however you'll find that in the real life market, things are usually more complex than how they say you should set your prive in the textbooks. Tech businesses don't stock endless supplies of a certain product, and even though you spend big amounts of money on software or mobile service development, as time goes on, the amount it will cost to make more units decreases until it reaches 0.
Moreover, a lot of startups have no competitors to benchmark against as their product is brand new.
When this is the case, the traditional model works in different and unusual ways.
Hypothesis must be formed so that you can set a price. You can test and use analytics. However you shouldn't count on only data to make informed decisions. Remember to take clients and staff opinions into account, competitors, and your own beliefs.
This business tool includes
1 PDF Template, 1 Explanatory Article
Sequoia Capital offers you this business tool for free!
download for free
Add to bookmarks
People using this tool also downloaded
Renewable Project Finance and Price Bidding Analysis Excel ModelsThis tool contains two excel files on renewable project finance and price bidding analysis.pricerenewable energyrenewable project financeprice biddingprice bidding analysis34 remove_red_eye
Variance Analysis TemplateThis is an Excel model template for Master Revenue Variance Analysis (Volume, Mix, Price, Fx Rate).revenuefinanceplanningvariance analysisvolumemixpricefx ratecontrollingbudgets439 remove_red_eyefreeby Umit Coskun
Pricing Your Product: Product Costing Excel TemplateExcel spreadsheet to calculate how much it costs to produce your product.productmarketingpricingcoststemplateexcelpricefreedownload7,403 remove_red_eye
How to Price Your ServicesThis video contains 4 easy steps on how to price your services.competitorsstrategysalespricingcostspriceservices36 remove_red_eyefreeby George Kao
How to Forecast RevenueThis video simply explains how to forecast revenue using easy-to-follow diagrams and examples.revenuefinancecustomersvolumepricevideohow toexplanationrevenue calculationsparkNew!
Forecasting ExpensesThe concept of cost, the difference between direct & indirect expenses, & the process of forecasting each of these.revenueexpensescostscustomerspricevideohow tosmeexplanationyoutube15 remove_red_eye
Conjoint Analysis Excel TemplateIdentify product attribute customer preferences, customer's willingness to pay, and product market share.analysistemplateexcelpricemethodsrankingconjoint analysisattributescompositionaldecompositional13 remove_red_eye
Any questions on Pricing Worksheet?
The user community and author are here to help. Go ahead!