Tue, 15 August 2023
Pricing Based on Strategy
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Your product strategy drives your pricing model.
There are three strategies to consider which are driving revenue growth, gaining market share, or driving profits.
For startups raising funding, driving revenue growth is the best strategy as investors want to see traction and growth.
Regardless of the competition or the state of the product, the startup should put revenue growth first.
Take all sales opportunities to maximize revenue.
For startups not raising funding but looking to win market share, start with a low price and then increase it with premium features or by usage.
Look for opportunities left open by the competition for your sales efforts.
For startups looking for profitability, start with a small number of customers that will pay a higher price.
As you grow the business you can look for additional profitable business opportunities that allow for premium pricing.
Avoid low-margin products by letting other companies provide them.
You can use partners to complete the solution for the customer if necessary.
Set your business strategy before setting your pricing strategy.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
For more episodes from Investor Connect, please visit the site at: http://investorconnect.org
Check out our other podcasts here: https://investorconnect.org/
For Feedback please contact email@example.com
Please follow, share, and leave a review.
Music courtesy of Bensound.