I’ve been working on price points – researching, testing, communicating, trialing, changing, communicating, and restarting the loop. I caught this interesting read on creating price points – and move to MRR and ARR for a startup.
Written by Tom Whitwell of Fluxx, he makes two main points: don’t talk about pricing and to experiment are the only way to get to the end price point.
However, this belies significant more in-depth work that has to be undertaken to understand at what point the meeting of sales price and demand cross to achieve the greatest sale – pure, fundamental old economics. This activity has created the pivots startups undertake, and the process of grandfathering users onto new pricing models following trials and testing of new offerings.
Getting pricing right is fundamental, getting it right first time is a quest.
He is Founding Partner at Metropolis Partners