Pricing

This section covers all aspects of pricing products and services, from determining standard prices to offering sales, discounts, and freemium products. 


Topics

Related Topics


Experts


Posts by Month

Recent Posts

Pricing

 Chris Dixon

In almost every two-sided market, one side is harder to acquire than the other. The most common way to attract the hard side is the ladies’ night strategy: reduce prices for the hard side, even to zero (e.g. Adobe Flash & PDF for end-users), or below zero (e.g. party promotors paying celebrities to attend).

 

Chris Dixon

Enterprise-focused VC’s sometimes refer to products priced between (roughly) $5k and $100K as falling in the “valley of death.” Above $100K, you might be able to make a profit given the cost of sales. Below $5k you might be able to market your product, hence have a very low cost of sales. In between, you need to do sales but it’s hard to do it profitably.

 

Chris Dixon

The ideal division allows the free product to be an independently useful, non-annoying, non-expiring standalone product, while still leaving room for the paid version to offer sufficient additional value that some acceptable percentage of your users will upgrade.

 

Babak Nivi

 

What’s the right price for your product? According to Steve Blank, it’s apparently $0. And it’s also $1 million. What?