Kevin Hale - Startup Pricing 101

Summary

El guion trata sobre los fundamentos de la fijación de precios, especialmente para startups y productos innovadores. Se discuten las dificultades en la定价ción, técnicas para optimizar precios y estrategias para atraer a los primeros adoptadores. Se enfatiza la importancia de entender el valor percibido y la relación entre costos, precio y valor, y se aconseja aumentar los precios gradualmente hasta perder el 20% de las ventas para encontrar el punto óptimo.

Takeaways

• 📈 La optimización de precios es un aspecto crítico para el crecimiento de una empresa, y aunque a menudo es descuidado, ofrece un gran retorno en la inversión de esfuerzos.
• 💡 El concepto de 'termómetro de precios' ayuda a entender la relación entre el costo, el precio y el valor, y cómo estas interacciones afectan el crecimiento de la empresa.
• 🔄 Existen dos enfoques principales para establecer precios: basado en el costo (costo más) y basado en el valor. El segundo es recomendado para startups, pero puede ser difícil de implementar correctamente.
• 🚫 Los errores comunes en la fijación de precios incluyen la subestimación del costo, la falta de comprensión del valor percibido por el cliente y el enfoque en el grupo de clientes incorrecto.
• 💰 Los startups tienden a subestimar sus costos y no comprenden completamente el valor que ofrecen, lo que resulta en una fijación de precios demasiado baja.
• 🛍️ Los clientes tempranos, que son los primeros en adoptar un producto, no son sensibles al precio y buscan beneficios sobre todo; por lo tanto, no debes subestimar el valor de tu producto para ellos.
• 📉 La falta de comprensión del valor puede llevar a una fijación de precios incorrecta, ya que no se puede convencer al cliente de que el producto vale lo que se está pidiendo.
• 📈 La estrategia de adquisición se ve afectada por la fijación de precios; un precio incorrecto puede conducir a una estrategia de adquisición inadecuada o a un desperdicio de dinero.
• 📊 La optimización de precios implica probar diferentes precios y observar su efecto en las tasas de conversión, el volumen de ventas y los ingresos generados.
• 🚀 Al establecer precios, es importante asegurarse de que el valor percibido por el cliente sea al menos 10 veces el precio, para aumentar la probabilidad de compra.
• 📉 Si los precios son demasiado bajos, pueden generar dudas en los clientes sobre la calidad o la confiabilidad del producto, lo que puede ralentizar el crecimiento.
• 📈 Al aumentar los precios en un 5% y observar la caída en el número de ventas, se puede determinar el punto óptimo de equilibrio entre precio y volumen de ventas.

Q & A

¿Por qué es el precio un tema de gran interés en startups y por qué es difícil establecerlo?

El precio es un tema de gran interés en startups porque afecta directamente a la estrategia de adquisición y monetización. Es difícil porque implica entender los costos, el valor percibido por el cliente y cómo estos factores interaccionan para impulsar el crecimiento de la empresa.

¿Qué es el 'termómetro de precios' y cómo ayuda a entender los problemas de定价？

El 'termómetro de precios' es un concepto que ayuda a visualizar la relación entre el costo, el precio y el valor. Ayuda a comprender cómo estos factores afectan el crecimiento y a identificar los errores comunes en la estrategia de precios.

¿Cuáles son las dos formas principales de establecer el precio de un producto o servicio?

Las dos formas principales de establecer el precio son 'costo más', donde el precio se basa en los costos de producción y se añade un margen de beneficio, y 'precio basado en el valor', donde el precio se establece en función del valor que el cliente percibe en el producto o servicio.

¿Por qué muchas startups cometen el error de poner un precio demasiado bajo a sus productos?

Muchas startups subestiman sus costos y no comprenden el valor que ofrecen a los clientes. Esto lleva a una falta de margen y a la dificultad de convencer a los clientes de que el valor propuesto justifica un precio más alto.

¿Cómo afecta el precio en la estrategia de adquisición de clientes y por qué es importante entender esto?

El precio直接影响 la estrategia de adquisición porque determina qué tipos de clientes se pueden atraer y retener. Es importante entender esto para evitar malas posiciones estratégicas o gastar demasiado dinero en la adquisición de clientes que no resultan rentables.

¿Qué es un 'pricing trick sprinkle' y cómo se utiliza en la optimización de precios?

Un 'pricing trick sprinkle' es una técnica o truco de定价 que se utiliza para mejorar la optimización de precios. Se refiere a estrategias sencillas pero efectivas que se pueden aplicar para solucionar problemas específicos en la定价.

¿Cuál es la relación entre el esfuerzo invertido en la monetización y el impacto en el negocio según la encuesta de más de 500 compañías SaaS?

Según la encuesta, invertir un 1% de esfuerzo adicional en la monetización puede generar un retorno del 3.32% en el negocio, lo que muestra que la optimización de precios es una de las estrategias más efectivas para el crecimiento.

¿Por qué es importante no subestimar el valor de los productos para los 'early adopters' y cómo afecta esto a la percepción de riesgo?

Los 'early adopters' buscan beneficios y no son sensibles al precio. Subestimar el valor de los productos puede hacer que parezca que hay un riesgo de reputación, lo que lleva a cuestiones como '¿por qué es demasiado bueno para ser verdad?', lo que puede disuadir a los clientes de adoptar el producto.

¿Cómo se puede utilizar una tabla simple para optimizar los precios y qué datos se deben considerar?

Para optimizar los precios, se puede utilizar una tabla con columnas para los diferentes puntos de precio, las tasas de conversión resultantes, el volumen de ventas y los ingresos generados. Esto permite comparar fácilmente los efectos de diferentes precios y elegir el que ofrece el mejor equilibrio entre ingresos y volumen de ventas.

¿Qué es la 'zona de peligro' en términos de定价 y por qué es importante identificarla?

La 'zona de peligro' se refiere a un rango de precios en el que los costos de adquisición son demasiado altos en comparación con los ingresos generados, lo que lleva a una sostenibilidad insostenible para la empresa. Es importante identificarla para ajustar el precio o reducir los costos de adquisición y asegurar la viabilidad a largo plazo.

¿Cuál es la 'regla de 10-5-20' en定价 y cómo se aplica?

La 'regla de 10-5-20' sugiere establecer un precio que sea 10 veces el valor percibido por el cliente, comenzar a aumentar los precios en un 5% y continuar aumentándolos hasta que se pierdan el 20% de las ventas. Esto ayuda a encontrar el punto óptimo de precio que equilibra la aceptación del mercado y la rentabilidad.

Outlines

00:00

💡 Fundamentos de Precios para Startups

Esta sección cubre los conceptos básicos de la fijación de precios, destacando su importancia y dificultad particular para las startups. Se discute la relevancia de entender la relación entre costos, precio y valor, y cómo estos factores influyen en el crecimiento empresarial. Se mencionan estrategias de optimización de precios y se desentraña el proceso, proporcionando consejos prácticos para abordar desafíos de定价问题. Además, se enfatiza la importancia de la monetización y cómo la optimización de precios puede tener un impacto significativo en el negocio, a menudo más del que la adquisición o la retención de clientes.

05:01

🚫 Errores Comunes en la Fijación de Precios

Se identifican cuatro errores frecuentes que cometen las startups al fijar precios: la subestimación de costos, la falta de comprensión del valor percibido por el cliente, la incapacidad para convencer a los clientes de dicho valor y el enfoque en el grupo de clientes incorrecto. Se argumenta que los productos innovadores suelen ser subestimados en el mercado, lo que resulta en márgenes insuficientes y una falta de reconocimiento del valor que ofrecen. Además, se destaca la importancia de comprender a los tempranos adoptadores y cómo su enfoque en los beneficios y no en el precio los hace no sensibles a la fijación de precios.

10:02

📊 Optimización de Precios y Análisis de Ventas

En esta sección, se aborda el proceso de optimización de precios, utilizando una tabla sencilla para evaluar diferentes puntos de precio y sus efectos en la tasa de conversión y el volumen de ventas. Se sugiere que las empresas deban tener en claro cuántos clientes necesitan para alcanzar objetivos de ventas anuales y cómo esto se ve afectado por el precio de sus productos. Se introduce el concepto de 'zona de peligro' para aquellos productos que tienen un ciclo de ventas largo y un precio no suficientemente alto como para justificar los costos de adquisición, y se enfatiza la necesidad de moverse fuera de esta zona mediante el aumento del valor percibido del producto o el ajuste de los precios.

15:03

💰 Estrategias de Precios para el Crecimiento Empresarial

El último párrafo enfatiza la importancia de la fijación de precios en el crecimiento de una empresa y proporciona reglas generales para establecer y ajustar precios. Se sugiere que los precios deben reflejar un valor 10 veces mayor que el precio de mercado y que sea fácilmente comprensible para el cliente. Se recomienda comenzar con un precio base y aumentarlo en un 5% hasta que se pierdan aproximadamente el 20% de las ventas potenciales, lo que indica que se ha alcanzado un equilibrio adecuado. Además, se aboga por la simplicidad en el proceso de optimización de precios y la necesidad de entender las variables involucradas, como los costos y el valor percibido, para poder comunicar efectivamente la propuesta de valor a los clientes.

Keywords

💡Precio

El precio es el término central del video, refiriéndose al valor monetario que se le asigna a un producto o servicio. Es fundamental para entender cómo las empresas establecen su estrategia de monetización y cómo afecta a la adquisición de clientes y la rentabilidad. En el video, se discute cómo el precio puede ser un factor de decisión crítico para los clientes y cómo las startups a menudo lo establecen de manera arbitraria, lo que puede resultar en bajos márgenes o una mala estrategia de adquisición.

💡Margen

El margen es la diferencia entre el precio de venta y el costo de producción de un producto. Es un indicador clave de la rentabilidad y se menciona en el video como el incentivo para vender. Cuanto mayor sea el margen, más se motiva a la empresa a promover y vender su producto, lo que a su vez puede influir en la estrategia de precios y en la percepción de valor por parte del cliente.

💡Valor

Valor es el concepto que se utiliza para medir la utilidad o la importancia que un cliente le da a un producto o servicio. En el video, se enfatiza la importancia de entender el valor percibido por el cliente y cómo esto puede ser mayor que el precio, creando un incentivo para la compra. La relación entre precio y valor es crucial para la optimización de precios y la estrategia de ventas.

💡Costeo

Costeo se refiere a la metodología de establecer el precio de un producto basándose en los costos de producción más un margen de beneficio. Es uno de los dos enfoques mencionados en el video para determinar el precio de un producto, el otro siendo el precio basado en el valor. El costeo es común en startups, pero el video sugiere que el precio basado en el valor puede ser más efectivo.

💡Optimización de precios

La optimización de precios es el proceso de ajustar los precios de un producto o servicio para maximizar las ganancias. En el video, se explica cómo realizar la optimización de precios mediante la prueba de diferentes precios y el análisis de su impacto en la tasa de conversión y el volumen de ventas, con el objetivo de encontrar el equilibrio ideal entre precio y volumen de ventas.

💡Estrategia de adquisición

La estrategia de adquisición se refiere a los métodos y tácticas que una empresa utiliza para atraer y obtener nuevos clientes. El video destaca cómo el precio puede influir en esta estrategia, ya que un precio incorrecto puede llevar a una mala posición en el mercado o a un gasto excesivo en la adquisición de clientes que no resultan rentables.

💡Clientes pioneros

Los clientes pioneros son aquellos que adoptan un producto o servicio temprano en su ciclo de vida. En el video, se argumenta que las startups deben enfocarse en estos clientes, quienes valoran más los beneficios que el precio y están dispuestos a asumir más riesgos para obtener una ventaja competitiva. Comprender quiénes son y cómo interactúan con el precio es clave para una estrategia de precios efectiva.

💡Innovación

La innovación es la creación de productos o servicios nuevos o significativamente mejorados. En el contexto del video, la innovación a menudo conlleva productos que requieren un cambio en los patrones de comportamiento de los usuarios, lo que puede ser un desafío para la adquisición de clientes debido a la resistencia al cambio y la necesidad de confianza en la solución innovadora.

💡Segmentación de mercado

La segmentación de mercado es la práctica de dividir un mercado en grupos de clientes con características similares. El video menciona el desafío de precios para diferentes segmentos, como las PYMES, y cómo la segmentación puede influir en la estrategia de precios y en la percepción de valor por parte de los clientes.

💡Regla de oro

La regla de oro mencionada en el video, '10x el precio', sugiere que el valor percibido por el cliente debe ser al menos diez veces mayor que el precio del producto. Esta regla actúa como un principio para establecer precios que reflejen el valor real del producto y motiven a los clientes a realizar una compra, asegurando al mismo tiempo una rentabilidad adecuada para la empresa.

Highlights

Pricing is a fundamental aspect of business strategy, especially for startups and innovative products.

The talk addresses the common challenges startups face with pricing and aims to demystify the process.

Pricing is particularly difficult for startups due to the unique nature of their products and markets.

The concept of the 'pricing thermometer' is introduced to understand the relationship between cost, price, and value.

The importance of price optimization for growth is highlighted, noting its often neglected status.

A survey of over 500 SaaS companies reveals the significant impact of pricing on business growth.

The '10x rule' is suggested for setting prices, where the perceived value should be ten times the cost.

Startups often make the mistake of undervaluing their products, leading to insufficient margins.

The importance of understanding customer segments, such as SMBs, and their impact on pricing strategy is discussed.

Pricing strategies can affect a company's acquisition strategy and its efficiency.

Early adopters are identified as the primary target for startups and their distinct characteristics in relation to pricing.

The concept of 'danger zones' in pricing is introduced, indicating unsustainable acquisition costs.

A simple table method for price optimization is recommended over complex graphs or models.

The importance of raising prices incrementally and gauging customer response is emphasized.

A practical approach to understanding the potential of reaching a billion-dollar valuation through pricing is discussed.

The 'Garbage Zone' in pricing is identified, where the sales cycle is too long relative to the price charged.

The impact of pricing on the sales process, from self-serve to enterprise-level sales, is outlined.

The talk concludes with actionable advice on pricing, including understanding costs, value, and customer segments.

The audience is encouraged to approach pricing with confidence and to not be afraid of making adjustments.

Transcripts

this was a highly requested talk from

last year or lots of people had

questions about pricing or really

confused it's actually was well

requested both at YC itself that's a

very very popular workshop that we run

and so we're gonna go over a lot of

basic fundamentals for pricing that

hopefully will just help you understand

how to approach your pricing and

monetization from first principles and

then you help you help yourselves same

thing with the landing page lock so

we're gonna go over first principles for

pricing we're gonna go over why is

pricing particularly hard for startups

for people making innovative products

and new markets like why is it extra

difficult how do you do price

optimisation like how do you actually do

it what does that actually look like and

just kind of demystify that whole

process when we look at the challenges

of pricing you start recognizing why

certain types of customer segments that

you're going after are difficult like

SMB and we'll talk a little bit about

that we're gonna talk about how pricing

affects your acquisition strategy it

changes what you can do and what you

cannot do and it's extremely important

because a lot of companies get caught up

doing the wrong position strategy or

wasting too much money use the price is

incorrect and then I'm gonna give you

some rules of thumbs some pricing tricks

just to help make it a lot easier when

you're encountering different pricing

problems I call them pricing trick

sprinkles okay there are three lovers

you can pull to improve growth so in the

last talk I talked about conversion rate

and churn but monetization is actually

the Big Dawg it's the one that I really

like now there was a survey done with

over 500 SAS companies and they talked

about sort of like amount of effort that

they put into each one of these

strategies and the returns that they got

as a result of it now acquisition is

really fun and exciting it's the one

that everyone kind of understands simply

it's like I get more customers I get

more logos gives me more growth

retention of course is about keeping

customers and

zatia is about getting more money per

customer now if you increase just your

efforts or resources by one percent your

work on acquisition usually get a return

of about three point three two percent

in retention it's about six point seven

and when you're optimizing pricing that

gives you your biggest bang for your

buck in terms of impact on your business

yet and it's the one that is most

neglected and I think it's the one that

everyone is so afraid to touch because

they're so scared that if they get the

pricing wrong that they will lose all

their customers now the first principles

the basic idea about pricing the thing

the concept that really opened up in my

head how to think about pricing how to

understand the problems that people are

facing and why startups get it wrong is

to use a concept called the pricing

thermometer and so you have to

understand that when you price something

there's actually like two other factors

at play and so there's a cost there's

the price and then there's the value and

the interplay of in relationship between

these items affects how growth happens

inside of your company now the gap

between price and cost that is your

margin that is your incentive to sell

and so the bigger that gap is the more

you are driven to want to push your

product to your customers to have your

sales people etc this gap here between

price and value is incentive to buy and

the larger that gap is the easier it is

to have your customers to want to sign

up or views your product now to figure

out price there's really two ways to go

about it you either start with the cost

if you know what it is and you figure

out where your price is based off of

that that is called cost plus the other

way to do it is figure out what is the

value of your company or product or

service and then you figure out your

price from that and that is called

value-based pricing

in startups and almost pretty

consistently across all businesses

everyone will tell you you should strive

for value-based pricing it allows you to

charge a whole lot more it allows you to

manipulate this incentive to buy the

problem is because people do not

understand their relationships or even

understand what are their costs and what

are the value that their customer is

going to think about their product they

put their price in a kind of arbitrary

place and they don't know what are the

forces at play that drives it and it

results in four different types of

mistakes

the first one is startups will price

their products too low basically you

consistently under charge is the number

one piece of advice we give through most

startups to fix their pricing and I'll

talk a little bit about why most

companies fall into that trap you

underestimate your costs and the result

is you have a problem where your margins

aren't enough to cover sort of

acquisition you don't understand your

value you don't understand how your

company thinks about the problem that

you're solving for them or how they

value it and either they don't

understand your value or you don't know

how to convince them of the value that

you think you offer and as a result you

can't get the price that you want and

lastly you focus on the wrong customers

that you think man

man if I built a better product and I

charge half the competition I win the

thing is that almost never happens and

the reason is because you as a start-up

you as working on something to create a

new market are working on innovative

products you are focused on the wrong

customers they are not the mainstream

people who are going to look at the

price and make most of the determination

based off of that so this is the sales

and profit over a product's life from an

Shinto demise that's what it's called

all you need to know is that these are

five different stages of a company and

this is what sales might look like over

different stages and what profits might

look like over those different stages

you who are in start-up school you who

are getting seed funding your are in the

first two stages product development

stage introduction you are not in the

growth phase and the thing to keep in

mind is that the customers in the first

two stages the ones that you're going

after they don't look like mainstream

customers that you find in growth and

maturity stages they're not mature

customers they're early adopters and

thing to know about early adopters is

you kind of don't really get a lot of

momentum and growth until you get past

the first two to five percent of

potential buyers of your market these

people in that two to five percent

they're called early adopters and the

thing that drives them it's very

different from mainstream people so one

there's a couple things to keep in mind

about pricing innovative products what

you are trying to do fundamentally is

require users the change to their

pattern to stop doing it the old shity

spreadsheet way and do it in the new

better your way and getting someone to

change their pattern is actually

difficult right especially if they're a

mature person partly because the average

user lacks

information needed and the trust in you

or whatever it is that you're making to

make that change to take that risk

you are entrepreneurs you're comfortable

taking risks your customers are not

entrepreneurs for the most part they're

probably less comfortable taking risks

and so in the beginning you're going

after people who are willing to take a

risk and those are early adopters those

are people who care about benefits above

all else that the highest value to them

is beating their competition

doing something much better and taking a

chance that something new will give them

that edge over anybody else those early

adopters therefore are not price

sensitive if anything if you've built a

better product and you charge less it

looks like you have reputation risk it's

like why is it too good to be true what

is the catch and what will end up

happening is it makes it much longer to

get to not understand this is basically

all price optimization this is those

complicated way that you can try to show

price optimization this is a demand

yield curve and when you have on this

side is different prices and on this

side you have sales unit sales and

basically what you are trying to figure

out when you're optimizing the price

that you're charging your customers is

like basically what is the perfect

balance between how much I charge and

how much sales volume I get and then

your price optimization is basically

that try different prices and then see

what the effect is when I have my

companies optimize their prices they

just use a very simple table you don't

need to try to figure that weird ass

graph basically you want to have a

column that says these are the prices

I'm gonna try and then what is the

result in conversion rate what is the

result in sales volume and then how much

revenue did I generate that's all it is

and so let's say I have prices at these

different price points and I get these

different conversion rates and I get

this sales volume I should immediately

be able to see who the winner is here we

go now the one thing to keep in mind

once we have figured out something like

this what a simple product is that these

areas at lower prices if you can afford

them in terms of your margin or actually

lost opportunities and what you want to

understand about these are these are

what you're going to see if you offer

discount pricing or offer tiered pricing

at different price points another

exercise I like to go with companies

when dealing with pricing is how them

understand is like

are you in a danger zone and so what I

usually do with my companies that I help

have them sort of calculate what would

their business look like or what does it

gonna look like to be a billion dollar

company and usually the rule of thumb

there is to be doing a hundred million

dollars a year in sales and revenue and

so that basically is like what at your

price that you give how many customers

do you need to have to make a hundred

million dollars in that year so let's

have a bunch of different price points

then we know okay great

I need these number of customers in

order to make this formula work you

understand what that looks like at a

hundred dollar price point with a

potential about million users right

this is consumers that's what that

consumer space looks like and you know

what this down here looks like $100,000

here we call this enterprise this area

here is the part that a lot of companies

are in and really really struggle

they're on the struggle bus and it tends

to be SMB these are people who kind of

treat their money like consumers right

but they kind of look like they might be

an enterprise and the reason why this is

such a danger zone is because it will

tend to fit in the wrong place on my

next diagram so let's imagine that this

vertical axis represents a price you can

charge either high price or a low price

for your product and this represents

complexity of your sales process low

complexity to high complexity if you are

having a product that is two thousand

dollars or less and is basically

self-serve then you have something in

this quadrant here and this affects

completely what you can do in terms of

what drives your business what you can

spend on to get that sort of growth that

price point here at $2,000 it needs to

be have almost all marketing be inbound

you can't spend a lot of money outbound

or ads etc

your support has to be completely

self-serve or very very minimal you have

no sales team at this price point you

can't afford it right but conversions

can happen on the same day must be in a

self-serve model transactional so

between two and ten thousand dollars

when you're able to charge this you're

able to have a few new toys at your

sleeves and so marketing now can be

focused on generating qualified leads

your customer support can now offer like

SL A's or you can start paying for

training that people get on boarded and

for sales you can't hire a dedicated

salesperson but maybe you can have an

inside sales rep to sell within

companies are within your customers you

could maybe have an SDR

and you can maybe have someone dedicated

to giving product demos sales cycle here

should not be longer than one to three

months enterprise it's over twenty five

thousand dollars now for marketing you

can start spending things on branding on

building up trust with customers your

support is very very high touched that

you can afford you can do phone support

you can have a customer success person

dedicated to the client and for sales

you're going to start thinking about

sales managers dividing stuff into

territories and having sales engineers

that participate in terms of conversion

and the sales calls these will have a

sales cycle about six to twelve months

this is the garbage zone right and you

know if you're potentially in this and

this is the big wake-up call for you if

it's taking you months and months and

months to close someone but you're not

making a lot of money to cover it you

have a process where your acquisition

costs are just too high for you to be

sustainable and you have to get yourself

out of that problem all of your work

should be towards increasing the

perceived value of your product or

service I'm going to end on a good rule

of thumb so if you are

starting with some kind of price but you

don't know how to sort of optimize it or

figure it out then here's a good place

to get going the first thing is I like

to have things where the value is 10x

the price of whatever it is I'm charging

and I want to have it so that the value

is easily understood to be 10x so for

example if I charge for a product that

is $10 then it should be in terms of

perceived value by my customer that it's

worth $100 to them if they do not

immediately understand the 10x value of

the price it's gonna be hard to get them

to move their incentive the buy might be

too low

once you have any kind of price and this

is particularly important for people are

doing b2b or enterprise sale you should

start practicing raising prices and I

like to just start by raising prices by

5% if you feel really confident jump it

up by bigger numbers if you want but

this is a pretty safe way to do it so

that you can feel comfortable with it

and you want to keep raising prices

until you're losing 20% of your

customers that's about a good balance to

have in terms of understanding that like

I have a good price here I'm losing 20%

of my deals it's not too high it's not

too low

in summary for pricing pricing gives the

most bang for your buck you should work

on pricing if you've never touched the

pricing of your product then you're

losing out on lots of potential growth

understand the variables do you really

understand your cost do you understand

why you've plate the price where it is

and do you understand the value when you

go into a sales meeting or call do you

talk to people and you basically say

it's like I know exactly what this is

going to be worth to you

so when I tell you what the price is

going to be you're going to be like damn

that's totally worth it

go after early adopters remember as a

startup that is who you're going after

so when you are talking to customers and

they are taking a really long time to

make a decision or they're wanting to

have a lot more proof that other people

are using it

are not talking to an early adopter

you're wasting a lot of time on

non-believers go after them first don't

take it personally when these people who

are much more mature aren't ready for

your products they were never going to

be your job is to get through that first

two to five percent of the market those

early adopters care more about benefits

than price so don't under your products

when you have something that is of value

and easily understood to have value get

organized when you're doing proper price

optimisation it's really really easy

don't over complicate things

figure out a bunch of different price

points you want to check understand

sales volume conversion rate and the

revenue that's involved and that will

help you make the best pricing decision

your price will determine your

acquisition strategy if you realize that

your sales cycle or all the things that

you're spending on is way too much for

the amount of money that you're charging

you either need to increase the price or

completely reduce your acquisition

strategy costs use the 10 520 rule set a

price that is 10x that is a tenth of the

value increase prices by five percent

until you are losing twenty percent of

the deals thank you very much guys

[Applause]

you

you