Pricing Worksheet

Description
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.

Starting out:

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.