{"id":17847,"date":"2021-10-22T15:32:25","date_gmt":"2021-10-22T15:32:25","guid":{"rendered":"https:\/\/productcollective.com\/?p=17847"},"modified":"2021-10-22T15:32:25","modified_gmt":"2021-10-22T15:32:25","slug":"product-pricing-art-science","status":"publish","type":"post","link":"https:\/\/productcollective.com\/product-pricing-art-science\/","title":{"rendered":"Product Pricing: Art or Science or Both?"},"content":{"rendered":"<p>Is pricing your product a dark art, or is it cold hard science? The answer is probably\u2026 yes. There are several strategies you can use to determine a price for your product (the science part). Picking the right strategy often requires a good understanding of your customers and what motivates them (the dark art). Here are some resources that help you choose the right pricing strategy and put it to good use.<\/p>\n<p><b>Pricing primer for product managers.<\/b> At some point, most product managers will participate in or even lead a pricing exercise. To help you when it\u2019s your turn with a pricing exercise, Abhishek Chakravarty lays out some tips on <a href=\"https:\/\/chakrvyuh.medium.com\/pricing-primer-for-product-managers-51f9d23031c2\">how to think through pricing your product<\/a> and some commonly employed Pricing frameworks that you can use as a reference.<\/p>\n<p>(via <a href=\"https:\/\/twitter.com\/ChakrVyuh\">@ChakrVyuh<\/a>)<\/p>\n<p><b>A to Z of pricing for product managers. <\/b>\u00a0Venkatesh at xplainerr is convinced that pricing is like an infinite jigsaw puzzle &#8211; extremely difficult to crack. He realized that pricing is a complex phenomenon. It\u2019s a mix of microeconomic principles, marketing theories, and human psychology. To help you solve the pricing puzzle Venkatesh put together a three-part series on product pricing. Here\u2019s the first part on <a href=\"https:\/\/xplainerr.substack.com\/p\/a-to-z-of-pricing-for-product-managers\">pricing strategies for consumer tech companies<\/a>.<\/p>\n<p>(via <a href=\"https:\/\/twitter.com\/xplainerr\">@xplainerr<\/a>)<\/p>\n<p><b>Pricing insights from 2,200 SaaS companies.<\/b> A few years back, OpenView Ventures launched a tool for SaaS companies to assess their pricing maturity and get advice on how to take their pricing to the next level. Now they\u2019ve had more than 2,200 SaaS companies participate. Kyle Poyar shares what they\u2019ve l<a href=\"https:\/\/openviewpartners.com\/blog\/saas-pricing-insights\/#.YW8RlhrMKUk\">earned about pricing from that dataset<\/a>. It offers a unique vantage point into how SaaS companies approach their pricing and packaging including who is responsible for it, how frequently they revisit pricing, and how much they charge.<\/p>\n<p>(via <a href=\"https:\/\/twitter.com\/OpenViewVenture\">@OpenViewVenture<\/a>)<\/p>\n<p><b>How to determine the optimal price for your product in a subscription business.<\/b> When you sell a subscription product, getting your product pricing strategy in place on day one will help retain a positive revenue stream. If you price your products incorrectly, you\u2019ll create problems that are difficult to overcome. David Gibb wants t<a href=\"https:\/\/www.liquidweb.com\/blog\/product-pricing\/\">o equip you with an understanding of how to price your products effectively from the beginning<\/a> vs. day 50 without getting a Master\u2019s Degree in the Economics of Pricing.<\/p>\n<p>(via <a href=\"https:\/\/twitter.com\/LiquidWeb\">@LiquidWeb<\/a>)<\/p>\n<p><b>How to Price a Product: A Small Business Guide. <\/b>Proper product pricing can help you establish and sustain a successful business. Master this and you\u2019ll find it easier to generate sales and build buyer relationships. It will also convert your existing customers into repeat customers. But pricing a product can be tricky. Set your prices too low, and you risk not bringing in enough profit. Price too high, and you might discourage your customers from buying. Jimmy Rodela provides<a href=\"https:\/\/www.fool.com\/the-blueprint\/how-to-price-a-product\/\"> seven steps you can follow to come up with the right pricing game plan<\/a>.<\/p>\n<p>(via <a href=\"https:\/\/twitter.com\/themotleyfool\">@themotleyfool<\/a>)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Is pricing your product a dark art, or is it cold hard science? The answer is probably\u2026 yes. There are several strategies you can use to determine a price for your product (the science part). Picking the right strategy often requires a good understanding of your customers and what motivates them (the dark art). Here [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":17856,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"inline_featured_image":false,"footnotes":""},"categories":[340],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Product Pricing: Art or Science or Both? - Product Collective | Organizers of INDUSTRY: The Product Conference<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/productcollective.com\/product-pricing-art-science\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Product Pricing: Art or Science or Both? - Product Collective | Organizers of INDUSTRY: The Product Conference\" \/>\n<meta property=\"og:description\" content=\"Is pricing your product a dark art, or is it cold hard science? The answer is probably\u2026 yes. There are several strategies you can use to determine a price for your product (the science part). Picking the right strategy often requires a good understanding of your customers and what motivates them (the dark art). Here [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/productcollective.com\/product-pricing-art-science\/\" \/>\n<meta property=\"og:site_name\" content=\"Product Collective | Organizers of INDUSTRY: The Product Conference\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/productcollective\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-22T15:32:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/productcollective.com\/wp-content\/uploads\/2021\/10\/giphy-6.gif\" \/>\n\t<meta property=\"og:image:width\" content=\"480\" \/>\n\t<meta property=\"og:image:height\" content=\"196\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/gif\" \/>\n<meta name=\"author\" content=\"Kent J McDonald\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kent J McDonald\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/productcollective.com\/product-pricing-art-science\/\",\"url\":\"https:\/\/productcollective.com\/product-pricing-art-science\/\",\"name\":\"Product Pricing: Art or Science or Both? - Product Collective | Organizers of INDUSTRY: The Product Conference\",\"isPartOf\":{\"@id\":\"https:\/\/productcollective.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/productcollective.com\/product-pricing-art-science\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/productcollective.com\/product-pricing-art-science\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/productcollective.com\/wp-content\/uploads\/2021\/10\/giphy-6.gif\",\"datePublished\":\"2021-10-22T15:32:25+00:00\",\"dateModified\":\"2021-10-22T15:32:25+00:00\",\"author\":{\"@id\":\"https:\/\/productcollective.com\/#\/schema\/person\/1d2a0862706dd25cb859df898421cfc9\"},\"breadcrumb\":{\"@id\":\"https:\/\/productcollective.com\/product-pricing-art-science\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/productcollective.com\/product-pricing-art-science\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/productcollective.com\/product-pricing-art-science\/#primaryimage\",\"url\":\"https:\/\/productcollective.com\/wp-content\/uploads\/2021\/10\/giphy-6.gif\",\"contentUrl\":\"https:\/\/productcollective.com\/wp-content\/uploads\/2021\/10\/giphy-6.gif\",\"width\":480,\"height\":196},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/productcollective.com\/product-pricing-art-science\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/productcollective.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Product Pricing: Art or Science or Both?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/productcollective.com\/#website\",\"url\":\"https:\/\/productcollective.com\/\",\"name\":\"Product Collective | Organizers of INDUSTRY: The Product Conference\",\"description\":\"For people who build, launch and scale world-class software products.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/productcollective.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/productcollective.com\/#\/schema\/person\/1d2a0862706dd25cb859df898421cfc9\",\"name\":\"Kent J McDonald\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/productcollective.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f05af3c4d932a4dd567e445ee0e47cc9?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f05af3c4d932a4dd567e445ee0e47cc9?s=96&d=mm&r=g\",\"caption\":\"Kent J McDonald\"},\"description\":\"Kent J McDonald writes about and practices software product management. He has product development experience in a variety of industries including financial services, health insurance, nonprofit, and automotive. Kent practices his craft with a variety of product teams and provides just in time resources for product people at KBP.media and Product Collective. When not writing or product managing, Kent is his family\u2019s #ubersherpa, listens to jazz and podcasts (but not necessarily podcasts about jazz), and collects national parks.\",\"sameAs\":[\"https:\/\/www.kbp.media\",\"https:\/\/twitter.com\/kbpmedia\"],\"url\":\"https:\/\/productcollective.com\/author\/kentjmcdonaldgmail-com\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Product Pricing: Art or Science or Both? - Product Collective | Organizers of INDUSTRY: The Product Conference","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/productcollective.com\/product-pricing-art-science\/","og_locale":"en_US","og_type":"article","og_title":"Product Pricing: Art or Science or Both? - Product Collective | Organizers of INDUSTRY: The Product Conference","og_description":"Is pricing your product a dark art, or is it cold hard science? 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