Talks
Speakers
Events
Topics
Sign in
Home
Talks
Speakers
Events
Topics
Leaderboard
Use
Analytics
Sign in
Suggest modification to this talk
Title
Description
What's in a price? How to price your products and services by Michael Herold So you have something new to sell: maybe your first book or a hip new SaaS. How do you decide the price? How do you know you're not overpricing? Or underpricing? Why, oh why, did you ever think to sell something?! Instead of choosing a number by looking inward at your costs, you can use what programmers use best: an abstraction! You'll learn a model for picking the right price for your product and what that price communicates so you can confidently price your next great invention. You'll leave with an actionable list of next steps for pricing your future projects.
Date
Summarized using AI?
If this talk's summary was generated by AI, please check this box. A "Summarized using AI" badge will be displayed in the summary tab to indicate that the summary was generated using AI.
Show "Summarized using AI" badge on summary page
Summary
Markdown supported
In his talk "What's in a Price? How to Price Your Products and Services," Michael Herold emphasizes the importance of strategic pricing for products and services. He discusses the common apprehensions faced by individuals, especially solopreneurs and new entrepreneurs, when determining how to price their offerings. By introducing foundational concepts from economics, Herold provides a structured approach for setting prices that reflect value while addressing market demand. Key Points: - **Introduction to Pricing Anxiety**: Herold shares a personal story of uncertainty when pricing new products at his company, Flywheel, highlighting how many encounter fear when putting a price tag on their first offerings. - **Economic Foundations**: He explains basic economic principles, including the concepts of supply and demand, equilibrium pricing, consumer surplus, and producer surplus. Understanding these concepts helps in making informed pricing decisions. - **The Price Sensitivity Meter**: Herold presents the Van Westendorp Price Sensitivity Meter, a model used to determine how potential customers perceive prices. This model involves surveying potential customers with four critical questions that ascertain their perceptions of what constitutes 'too cheap' or 'too expensive'. - **Survey Design and Data Analysis**: He details how to create an effective survey, emphasizing the importance of designing a pricing scale, segmenting audiences, and analyzing responses using cumulative distribution functions to find optimal pricing. - **Visualizing Pricing Data**: Graphical representations of survey results are discussed, helping participants identify psychological thresholds in consumer behavior regarding pricing. - **Strategic Pricing Decisions**: Herold concludes that pricing should not solely be an adversarial tactic to maximize profits, but rather should aim to create consumer surplus, fostering customer satisfaction and brand loyalty. Ultimately, the talk encourages viewers to approach pricing as an collaborative decision-making process, leveraging market insights to align pricing with customer expectations. Herold leaves the audience with actionable steps and a new perspective on considering customers as partners rather than mere transactional entities.
Suggest modifications
Cancel
