Pricing primer for Product Managers
How to think through pricing your product
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Sign up here to get the next post straight to your inbox.“How should we price this product?” — somebody posed the question in our weekly product meeting. I had no idea.
It was my very first product launch and I had no experience pricing a real product before. The closest I had gotten to “pricing” something was at a Product Positioning and Pricing course at business school — but again, that was coursework based on hypotheticals, and this was the real world.
The idea was to price the product such that we could maximize profits. The “profitability north star” seemed like a good one to go after. The product launch was still a few months away, so we had some time to finalize our pricing.
Upon returning home that evening, I remember diving into my MBA coursework to refresh pricing basics.
At some point, most Product Managers will participate in or even lead a pricing exercise. So in this post, I will lay out some tips on how to think through pricing your product and some commonly employed Pricing frameworks that you can use as a reference to price your own product.
