When we approach pricing without research or strategy, we end up with uncertainty, ineffective communication, and demonstrating a lack of understanding our customers’ needs.

We need an outside-in approach that starts with researching the value customers get from our product or service. By focusing on the customer and their needs, we can develop a pricing strategy that is clear, confident, and effectively communicated.

This week, Carlos and Ben discuss a blog post on the perceived mistakes Elon Musk made in the wake of his attempt to charge $20 per Twitter account that wanted to receive a blue Verified badge.

What Musk saw was resistance, ambivalence, and ultimately the need to make quick pivots. Pricing solely based on internal needs and without considering customer value can lead to missed opportunities and an ineffective pricing strategy, so what lessons can be drawn, not only from Musk’s pricing strategy, but from the value he placed on buying the company to begin with?

Links

• Join the Happy Pricing course
• Join the conversation live
• Five lessons on how not to do pricing from Elon Musk’s Twitter