Invest Like the Best with Patrick O'Shaughnessy

Madhavan Ramanujam - How to Price Products - [Invest Like the Best, REPLAY]

489 snips
Jan 23, 2024
Madhavan Ramanujam, author of "Monetizing Innovations," shares his expertise on product pricing strategies used by industry giants like Porsche and Uber. He highlights common pricing mistakes and underscores the importance of focusing on customer benefits rather than features. Listeners will learn how integrating pricing early in product development can enhance market fit. Madhavan also discusses effective product configuration and the complexities of choosing between subscription and usage-based models, aiming to align pricing with genuine customer value.
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ADVICE

Early Pricing Conversations

  • Discuss pricing early in product development, not at the end.
  • Test for product-market-pricing fit before investing heavily.
ANECDOTE

Porsche's Cayenne Success

  • Porsche successfully used early pricing research when designing the Cayenne SUV.
  • They tested features like cup holders and transmissions with prototypes and willingness-to-pay conversations.
ADVICE

Product-Market-Pricing Fit

  • Don't just aim for product-market fit; strive for product-market-pricing fit.
  • Understand if customers truly value your product enough to pay for it.
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