This week Amazon raised the price of their Prime membership. The result of their excellent pricing execution could be nearly $500M in incremental profit. What did they do so well, and what can you learn from it? Let’s jump in.
“Nowadays people know the price of everything and the value of nothing.”
Four easy steps to getting your pricing right.
Pricing is an important issue that needs to be considered early and often in start-up companies. But when it comes time to hit the ground with it, many entrepreneurs make a critical mistake: conducting a willingness to pay survey. The survey may be easy to do and appears to provide information that will help your business make pricing decisions. However, beneath a willingness to pay (WTP) survey are three assumptions, all false, that will cost you money.
Several years ago, I worked with a product manager for a medical device company who had a burning question for me. His game-changing product was ready to go, the sales …