Bulletproof Problem Solving: The One Skill That Changes Everything with Charles Conn
The Innovation Show
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Making Pricing Decisions in a Startup Company
Aidan: In young companies, cash is even more critical than an established ones. So many startups face the lemma of cutting costs to save margin or do you raise price? And as you said, it's a super scary decision. We just sat down with a whiteboard and created a really simple profit lever tree. If you could raise prices by only 7%, you'd double the cash profitability of the business,. removing all that margin pressure. At that price level, there was low price elasticity of demand. People didn't stop purchasing just because it went up by 50 bucks. It showed like a little bit of discipline problem solving with a very simple logic tree. But I probably need
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