Nov 28, 2019

Price Your Product

Added Expert Advice section

←Older revision Revision as of 23:53, 28 November 2019
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#*Captive Product Pricing is used when products have complements. Companies will charge a premium price where the consumer is captured. For example, a razor manufacturer will charge a low price and recoup its margin (and more) from the sale of the only design of blades which fit the razor.
 
#*Captive Product Pricing is used when products have complements. Companies will charge a premium price where the consumer is captured. For example, a razor manufacturer will charge a low price and recoup its margin (and more) from the sale of the only design of blades which fit the razor.
 
#*In some places or under certain circumstances, price gouging is unlawful.<ref>https://ift.tt/37LEFCC>
 
#*In some places or under certain circumstances, price gouging is unlawful.<ref>https://ift.tt/37LEFCC>
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==Expert Advice==
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*'''Before you think about the pricing, look at the core of how you'll monetize.''' For instance, if users are central to your monetizing strategy, you'll want to make sure that version one of your product gets users and keeps them for as long as possible. You can focus on the pricing model once you've accomplished that. However, if you're offering something completely revolutionary in your industry, you'll want to be strategic about monetizing from the beginning.
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*'''Your expenses should help you determine your pricing model.''' When it comes to monetization, think about the most important expense you have in building that product. Then, try to see how you can offset those costs by charging for your product. For instance, if you're spending most of your resources on compute power, your pricing strategy might be based on the number of users on your platform.
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*'''Sometimes the data you generate is more valuable than the user experience.''' If the end users are consumers who are getting a benefit from your product, think about whether you want to directly charge them to use your product or to charge them through a third party agency, like ads on a website.
 
== Video ==
 
== Video ==
   


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