The most common pricing mistake

If your costs scale with usage then usage based pricing aligns your costs with your customers' spend. This prevents very large customers from being your worst customers, by generating lots of revenue, but costing you money because the account is gross-margin negative.

If yo...

• Cost-plus pricing: You make the product, add a fixed percentage on top of the costs, and sell it for the total.
• Competitive pricing: It refers to using competitors’ pricing data as a benchmark and consciously pricing your products below theirs.

During the launch of the product, you decide on a simple pricing model for your product. When your product evolves, is your pricing changing equally? Is your pricing competitive and straightforward for the users as it was initially?

Re-work the pricing strategy of your product so that you...