My presentation at Product Camp Berlin 2014

1. 10 Things I learned about
pricing
Lars (@trieloff) at #pcampb14

2. 1. Always price to value

3. (Not the actual website)

4. 2. Freemium is neither a
word nor a pricing strategy

6. 3. Your price list is the bad
cop, to your good cop sales
guy

7. (product manager, don’t be that guy)

8. 4. Start small to get a
foot into the door

12. 5. It's better to be the filet
mignon than to be the
steak knife

13. (I know, it’s counter intuitive. At least for Germans)

14. Every sales guy who likes to quote this movie …

15. … loves to throw in a set of free steak knives to seal the
deal.

16. Free products don’t get
revenue, don’t get
attention & don’t sustain.

17. 6. Good pricing is based on
data

18. “Can you give me all your
historical sales data? I
want to validate your
pricing structure.”
1
My brilliant pricing manager

19. My pricing manager was not actually Gandalf, but still a
wizard with Microsoft Excel. He helped us simplify the
price list and reduce discounting rate.

20. 7. Cost plus and
competition minus are a
rock and a hard place

21. In perfect competition, the
price of goods approaches
the marginal cost of
production.
1
Econ 101

22. In software, your marginal cost of production (another
copy, another download, another visitor) is zero.

23. In software, your marginal cost of production (another
copy, another download, another visitor) is zero. And
so would be your price.

24. In software, your marginal cost of production (another
copy, another download, another visitor) is zero. And
so would be your price. And your revenue.

25. In software, your marginal cost of production (another
copy, another download, another visitor) is zero. And
so would be your price. And your revenue. And your
salary.

26. In software, your marginal cost of production (another
copy, another download, another visitor) is zero. And
so would be your price. And your revenue. And your
salary. Good luck with that.

27. 8. Customer Pricing is
good, segmentation is
better, self-segmentation
is best

29. 9. Find the point of
diminishing returns — and
price to it

30. Value generated per optimized product.

31. Three editions, each with base volume and scalable
extra volume results in an easy to understand model
that reflects customer value.

32. 10. No pricing without
hard choices

33. Force the customer to make hard
choices
4 Non-continuous value function
4 Features reserved for higher editions
4 Cojoint analysis

34. Nice top 10 list …
… do you really need to
throw in a #11?

35. 11. Really good pricing is
really data driven

36. What’s your one weird
pricing trick?
@trieloff #pcampb14