Sage advice from Jason Cohen:
“Price is inextricably linked to brand, product, and purchasing decisions — by whom, why, how, and when. Price is not an exercise in maximizing some micro-economic supply/demand curve, slapped post-facto onto the product. Rather, it fundamentally determines the nature of the product and the structure of the business that produces it.”
So, fine, dive into your price elasticity surveys and analyze willingness-to-pay metrics for each of your customer personas. Get all nerdy up in there.
Just don't forget the point of the exercise: pricing is the most important lever in business design.
Get pricing right? Yay! Things work.
Get it wrong: struggle bus. Womp-womp.Read more...