Set Your Pricing Framework - Deepstash

Set Your Pricing Framework

The pricing process starts here, but pricing is likely to change several times as you go through the steps and experiment with different price points. Identifying specific dollar amounts won’t happen until a bit farther down the road. Ultimately, you want to estimate the lifetime value of an acquired customer and the cost of customer acquisition. This will be a step in the direction toward those goals.

Price should be based on how much value the customer gets from your product, not on how much it costs you to produce the product.

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jessicadelgado

Medical sales representative

There’s nothing magic about being a successful entrepreneur. It’s a learned skill, and in Disciplined Entrepreneurship, the author details 24 steps to a successful startup.

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6 common pricing strategies for small businesses (part 1)

  • 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.

2. Value Determines Price And Costs Are A Choice

With value being in the eyes (and experience) of the consumer, the price they are asked to pay must be (much) lower. The entrepreneur’s job is to figure out at what price their product is attractive, and then choose a cost structure that allows for profit. In other words, the price is a

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