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Episode #0113 - Pricing advice for start-ups
- 2022/10/14
- 再生時間： 23 分
- ポッドキャスト
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サマリー
あらすじ・解説
In today’s episode, we want to explore the world of startups and I supposed at Taylor Wells we got asked or approach by quite a few startup businesses and the early stages of development with questions about pricing advice and pricing strategy and how start-ups should price. And I suppose we just really want to explore some of those ideas today and maybe just discuss some ideas. TIME-STAMPED NOTES: [00:00] Introduction [03:00] What’s our advice on issues regarding pricing for start-ups? [12:19] How can we advice start-ups in discovering value in pricing? [16:57] Would you advice implementing various pricing strategies for start-ups? [22:01] Pricing Advice For Start-ups: Don’t lose data. Keep learning, testing, and trialling. Pricing Advice for Start-ups to Kick-start Their Growth Especially quite recently. We’ve had a number of questions and inquiries from startups. And we’re talking about startups, people that are literally coming up with new business ideas. And often, it’s the first time that they’ve done that and they’re trying to launch either a new product. Now, this could be ranging from, you know, an FMCG good product or you know even a Saas type product and you know, they come with legitimate concerns often they’ve heard the podcast and there’s thought, you know what, I never really considered any other approach to pricing, other than thinking about costs and putting a markup on the cost to give me that margin that I need to cover my costs and get revenue in through the door. And I never really thought about value-based pricing but it really did change my viewpoint, not just on the price point, but also it gave me a new perspective on what I’m trying to do in the market, my business model, how I’m going to generate revenue, what the sources of value are that are going to help me do that and cover my cost, how I’m going to work with suppliers who my target customers are. All these new and very important ideas came almost flooding in people’s heads after thinking about value-based pricing and, you know, we just going to explore today, you know, a little bit more about pricing for startups and a few techniques just to help people make those first few steps because it doesn’t have to be a difficult journey or long drawn-out journey, you can start pricing immediately, even though sometimes you think “God I’ve got so much else to do. I’m just going to get money through the door”, type of approach. It’s clearly, you know, we’re not gonna go into cost-plus pricing on this podcast, but clearly for a start-up, it’s even more exacerbated. You know, if you make one item, you know they’re your cost base is going to be higher than if you make a thousand. So, you know, as you grow in scale, do you intend to reduce prices? So, that makes no sense. But clearly a start-up even number of issues that will make pricing more difficult: A) there is no right price for your product. At the beginning, you don’t know what a value provides to your customers you might have an idea, you might have you know obviously you’ve got your pitch deck and you’ve got your ballpark figure and your idea, your elevator pitch let’s say, you know and you thought about why you’re getting into the business and where you fit in the niche. But realistically what’s that old saying? Everyone’s got a plan until they’re partially on the nose. I think Mike Tyson said and you know until you go out there and made customers and really get into the market you don’t really know, you look at statistics, how many companies, how many start-ups pivot? How many really hit a niche and really make money it’s limited obviously we don’t want to put people off from starting up but you know those things have to be borne in mind and when you’re looking at pricing, that is the issue. They are, you don’t have enough information at the beginning, there’s no saying that trying to get some customers, trying to get out there with some customers. Realistically, I don’t think the price of the beginning, we’ll get into this a bit later, but just winning customers is very important. Because then, you can explore value, it’s a value discovery process. Almost look at it as a subsidized value discovery process where a customer is almost paying you, it may be too much, or it maybe too little, but hopefully they’re paying you and then you can explore and learn about your own business. So that’s the first thing I’d say, clearly, It’s very important to get customers on board. The second thing I say, unless you have funding and we’ll talk about, you know, series A or a large amount of funding, it is highly unlikely to have a pricing manager. Let’s be honest. Most startups at the beginning have very limited revenue, and a good pricing manager’s salary probably will be quite expensive. So, you’re going to be doing an ad hoc, you’ll be doing it ...