Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Pricing the product or service is a key step in running a startup.

There are four pricing strategies to choose from:

1. Premium pricing is a price at the upper end of the scale and is used to attract higher-end users. The profit margins are greater here.
2. Low-cost pricing is a price at the lower end of the scale and is used to attract customers in volume. This gives you the greatest market size to sell to.
3. Skimming pricing is setting the price high at the beginning and then gradually lowering the price to capture new customers who could not afford the original price.
4. Penetration pricing is setting the price below cost to obtain market share.

Once you’ve chosen your pricing strategy, you then set the specific price with one of the following:

• Cost-plus pricing is setting the price as a calculation of the cost of making and delivering the product plus a margin.
• Value-based pricing is setting the price based on what value the customer perceives it brings regardless of the cost to build.
• Dynamic pricing is setting the price based on how much or how often the customer uses the product.
• Loss-leader pricing is setting the lead product price low to attract customers and set follow-on product prices high to capture the margin.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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In this episode, Hall welcomes Rick Grinnell, Founder and Managing Partner at Glasswing Ventures.

Headquartered in Boston, Massachusetts, Glasswing Ventures is an early-stage venture capital firm investing in the next generation of AI and frontier technology startups that are enabling the rise of the intelligent enterprise. They are laser-focused on funding exceptional entrepreneurs who are leading the AI revolution, capitalizing on the intellectual might and talent from the premier academic institutions on the East Coast, and fostering growth for our ecosystem.

Whether they are helping their portfolio companies build the best teams, acquire their first customers or brainstorm about strategic opportunities, or scale their operations, they are there for their founders and CEOs in the good times and the bad times on their journey to success.

Rick has led investments and serves on the Board of Directors of Allure Security, Armored Things, Black Kite, and Terbium Labs. As an experienced venture capitalist and operator, Rick has invested in some of the most dynamic companies in security, storage, analytics, and SaaS applications during his 20 years in the venture capital industry. In his previous role as Managing Director at Fairhaven Capital, Rick led investments and served on the Board of Directors of Digital Guardian, EqualLogic (acquired by Dell, a unicorn and fund returner), Prelert (acquired by Elastic), Pwnie Express, Resilient Systems (acquired by IBM), TrackVia (acquired by Primus Capital) and VeloBit (acquired by Western Digital). He also has deep operating experience having held senior marketing and engineering roles at Adero (acquired by Inktomi), ClearOne Communications (acquired by Gentner Communications, later renamed as ClearOne), and PictureTel (acquired by Polycom).

Rick is a member of the Educational Council at the Massachusetts Institute of Technology (MIT), is active with the entrepreneurial programs at Harvard and Tufts Universities, and is a frequent judge at MassChallenge. Rick’s contributions to the broader community include serving as a member of the Board of the Advanced Cyber Security Center, New England’s public/private security collaboration, and as Vice Chairman of the Board of Advisers at the Museum of Science in Boston. He previously served as a member of the Board of Directors of Big Brothers Big Sisters of Massachusetts Bay.

Rick has been recognized by New England Venture Network with the Community Leadership Award for his philanthropic work and contribution to the community. Rick holds BS and MS degrees in Electrical Engineering from MIT and an MBA from HBS.

Rick advises investors and entrepreneurs and shares his investment thesis.

You can visit Glasswing Ventures at www.glasswing.vc, via LinkedIn at www.linkedin.com/company/glasswing-ventures, and via Twitter at www.twitter.com/glasswingvc?lang=en.  

Rick can be contacted via email at rick@glasswing.vc, and via LinkedIn at www.linkedin.com/in/rickgrinnell.   

Music courtesy of Bensound.