Thursday, June 9, 2011

Lean Coffee: Pricing and Estimation

Today's Lean Coffee was hosted by Matthew Bertulli at the beautiful Mango Studios.

I managed to jot down a few notes from the session:
  • What is your market?
    • Enterprise pricing very different
  • Your pricing determines what type of customers you'll get
  • Estimating ties into pricing to determine whether a business is viable
  • Estimating your customer acquisition cost if important
  • Price as high as the market will bear
  • Should you price yourself based on cost?
    • Generally not, but should at least be considered a minimum
  • Should never offer a B2B app to businesses for free
  • B2C generally needs to have a free option
  • Estimating is very hard, and you will always underestimate
  • Estimating product costs: How long can you survive on no money?
  • Pricing: What are the alternatives?
    • What is the premium value you're offering?
  • Estimating: At least double it -- there are always unknowns

See you at the next!

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