The Secret to Finding the Perfect Price Market Fit
Figuring out the right price is hard, but plotting a utility map can help
It’s all coming together, after hours and hours of pouring your heart into creating a revolutionary product with amazing features, enormous market potential, and compelling initial customer feedback. But something just doesn’t add up.
You hear a lot about how to develop products to solve your customers’ greatest pain points. Or how to leverage social media to spread the word of your product to thousands of people almost instantaneously. More often than not, however, these articles leave out a key part of the equation to a successful product launch: pricing.
Pricing is one of the biggest headaches for marketing and product management teams, but a small improvement in pricing can move mountains. As one Harvard Business Review writer states, “For a company with 8% profit margins, a 1% improvement in price realization—assuming a steady unit sales volume — would boost the company’s margin dollars by 12.5%.”
“Price is what you pay. Value is what you get.”—Warren Buffett
A product’s economic utility
Economic utility is the total amount of satisfaction or value a customer derives by consuming a…
