Use your Quantified Value Proposition, Business Model, and other information you have gathered to determine an appropriate first draft price point and framework for pricing your product.
Even though it's impossible to know the right pricing for your new product just yet, you'll do some analysis now and make some decisions to get started, but also build a framework to intelligently adjust the pricing decision as you move forward.
Why This Step, and Why Now?
Pricing is something that is often talked about sooner than it should be. Now is the right time because you have the necessary information to have an intelligent conversation about pricing as a result of the work you have done in Step 8 (Quantify the Value Proposition), Steps 10 and 11 (Define Your Core and Chart Your Competitive Position), Steps 12 and 13 (the DMU and sales process) and Step 15 (Design a Business Model). Pricing will be necessary information to continue forward to Step 17 to determine the LTV (Lifetime Value) of a customer, which is the first critical component of the unit economics calculation.
Let's Get Started
With a Business Model in hand, you can now make a good first estimate on your Pricing Framework, understanding that it will almost ...
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