CHAPTER 7

Pricing Strategy

Simplicity and sexiness, that’s what people want. At a price that’s not outrageous.

—Diane von Furstenberg

People want economy, and they will pay any price to get it.

—Lee Iacocca

Outside of providing a unique solution to a job that consumers want to hire a product or service to accomplish, no other lever within your control is as important as pricing strategy to achieving market disruption. The reason is quite simple when you think about it.

As I discussed in the first chapter, innovations become disruptive when they provide a solution to a market scarcity that dramatically shifts the equilibrium to abundance. Disruption is caused by the distortions of the supply and demand curve that this extreme shift creates—distortions ...

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