To effectively set pricing in a competitive landscape, one must first analyze the competition, particularly when facing incumbents with low-cost offerings. Establishing clear positioning is crucial, as it conveys the value proposition to the target market. A structured approach, like the Van Westendorp pricing sensitivity meter, is essential for determining optimal pricing. This method involves asking potential customers four key questions to assess their price perceptions and thresholds, ranging from too high to be considered to too low that it raises quality concerns. Most startups, however, focus on pricing as a bargain to attract users, often neglecting the necessity of establishing a premium positioning that aligns with quality.
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We wrap up Season 4 with a very special (and accidental!) episode, a conversation with the CEO of Superhuman, the red hot email productivity app which just announced their $33m Series B led by Andreessen Horowitz. While originally intended as an LP episode, we felt Superhuman would provide the perfect bookend to our “modern enterprise productivity trilogy” following our Zoom and Slack episodes. We hope you enjoy the conversation with Rahul as much as we did, and we’ll see you later this summer for Season 5!
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