Pricing Your Product

Productize to segments and use casesPrice for value and then back out costs to find marginSell benefits not featuresPrice before product - figure out the value firstBundle leading items with additional features

If your product delivered more value than you thought customers were expecting, raise your price. But do it carefully, and in several steps. We've seen this happen many times. In the 1970s, Mercedes introduced a new SL car. The model sold out in a few months, and would-be customers were put on a waiting list of two years! Mercedes learned its mista

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In this book, we have boiled these secrets down into the following nine new rules for innovation success. The rules are contrary to what most executives have learned about product development: Have the “willingness to pay” talk with customers early in the product development process. If you don't do it early, you won't be able to prioritize the pro

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Pricing is hard. In the early days, you may be tempted to give your product away for free or to charge less than the value of your time or the raw materials you used. Don’t. In order to stay alive, you need to make money.