Reddit Reddit reviews Monetizing Innovation: How Smart Companies Design the Product Around the Price

We found 2 Reddit comments about Monetizing Innovation: How Smart Companies Design the Product Around the Price. Here are the top ones, ranked by their Reddit score.

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Monetizing Innovation: How Smart Companies Design the Product Around the Price
Wiley
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2 Reddit comments about Monetizing Innovation: How Smart Companies Design the Product Around the Price:

u/infinityplusplus · 4 pointsr/ProductManagement

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  1. In my SaaS startup world, your product should do one of two things: save customers' money or save them time. If you save them money, that's straightforward, you charge a % of the amount you save the customer. On the other hand, if your product saves a developer 1hr of time a month (based on your estimate), you can say 1hr of a developer's time is $100, so I'm going to price product at 10% of that, i.e. $10 a month. Also, look at established competitors who offer similar value to your product, that gives you a good benchmark for pricing your product. So, in summary: price product at % of value to customer or based on market price of competitor product offering similar value.
  2. In an early stage startup, the founder does the pricing. For medium stage startups, a product manager would have the responsibility to price product. For large companies, there's often a pricing team that does sophisticated modeling to come up with pricing.

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    I found the following book very useful to come up with a framework for pricing decisions: Monetizing Innovation. https://www.amazon.com/Monetizing-Innovation-Companies-Design-Product/dp/1119240867/.
u/Lipstickvomit · 4 pointsr/humblebundles