Most GTM missions fail not because of poor products but due to business model, monetization, and pricing issues. Philip Kotler famously said: “All the other elements of Marketing Mix spend money - Pricing makes it.” This is how I fell in love with pricing.
Last week, I ran an AI Products Pricing workshop for one of my favorite partners, a VC. Here are 3 pricing lessons I would like to share with you so you can do better than those 72% of companies that face pricing, monetization and business model issues:
Pricing = value transfer.
Most new players end up pricing in a 20-30% wiggle room of competition.
If you make it slightly cheaper, people will not magically want it more.
The article is structured in a way that I first present a lesson, followed by a framework and a tool for how you can DIY this and apply it to your business.
Content-wise, we will dive into value metrics and how to use them in pricing: pricing competition moodboards, we will also mention experimentation, packaging and pric…
