There are many ways to come up prices for your products, and I’ll try to cover a few in the next post in this series. But before I get into the business school answer, I wanted to give you a couple rules/guidelines that might help you along.
- Just sell already. Don’t let price worries keep you from selling your product as soon as possible. If you think your product is worth $100/month, but you’re worried that might be too high a price, start selling already and find out for sure.
- Go with your gut. I’ll get into some different methods for coming up with pricing in the next post in this series, but you probably already have an idea of a price in your head. Don’t be afraid to go with your gut on it. If the price “feels right” to you, it will probably “feel right” to your customers too.
- You can change your price later. Don’t feel locked into whatever pricing decision you make at the outset. You can change your price later. If you get members at your initial price, it will be easier to raise your price (for new members) than to lower your price. If you raise your price, early members will feel special (and they are!). If you lower your price, they may feel ripped off and you’ll need to find a way to making their higher contribution feel right.
More on Pricing
Read the entire series on pricing.
- How much do you want to make?
- Time and materials x margin.
- What’s the value of a membership to your customers?