I know I’m not at knowing how to price software. A friend, Sunil Saha, forwarded me this short and powerful video on that subject, by Madhavan Ramanujam of Simon-Kucher & Partners, which further demonstrates I need work deciding when to price software in the development process.
Highlights:
You need to decide pricing before development, and specifically, “If you didn’t get pricing in your product-market fit questions you’re probably getting what you want to hear.”
OK, then how do you ask potential customers about price; use an Acceptable – Expensive – Prohibitive framework, and in short, choose the “expensive” consensus.
Segmentation isn’t (just) demographics: Even narrow demographics may have very different tastes:
Looking forward to reading his book, Monetizing Innovation.
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