Pricing Strategy

“Success in business requires training and discipline and hard work. But if you’re not frightened by these things, the opportunities are just as great today as they ever were.” — David Rockefeller My friends and I were working on a new product, AIP (https://getaip.ai/). I vividly remember our struggles while…

This is the third article in the series on Price optimization. You can access the previous articles here: Part 1:https://medium.com/@aneesha161994/price-optimization-part-1-3999afb3de9 Part 2:https://medium.com/@aneesha161994/price-optimization-6e8daf08cb3e In this article we would cover the economical factors that need to be considered while setting a price: Supply and demand: The law of supply and demand is…

ChatGPT Pricing: A Complete Guide to ChatGPT Cost Estimation and Price Optimization Disclaimer The information presented in this blog post is based on the official ChatGPT documentation available at https://openai.com/pricing, and is intended to provide a comprehensive guide on ChatGPT pricing. While every effort has been made to ensure the accuracy…

As seen in the last article whose link can be found here. We saw that the pricing strategy is significant in the FMCG, retail, e-commerce, and merchandise sectors. 1. Significance of a Pricing Strategy in the industries Finding the optimal price is significant in these industries to: Maximize revenue: Setting an optimal price ensures that the company can maximize…

Cost-based: Asset, Market, or Income (DCF/NPV) | Value-Based: WTP | Markup v. Margin | Surveys: Van Westendorp, Gabor-Granger, Conjoint Analysis Pricing is arbitrary. The Pricing Uncertainty Principle tells us that. I mean, it’s anyone’s guess what a single person might be WTP, so why try? But here’s the deal. Since…

Optimization is the analytical and algorithmic aspects of maximizing and minimizing an objective function subject to constraints. This optimization can be seen in the areas of FMCG, retail, Ecommerce, Manufacturing, and merchandise industries. 1. FMCG industry where optimization is beneficial: FMCG refers to products that are sold quickly and at relatively low cost, such as food, beverages…

Pricing may seem simple: You offer a product or service at a higher price than it costs to produce it, and you make a profit. But pricing is more complicated than that. How you price your services reflects the personality of your business, how you compare to your competitors, and…

I’ve spoken to several SaaS founders toying with the idea of adding a Freemium tier to their existing pricing. There are several reasons why this could be an interesting move, but they could primarily be bucketed into these 4 categories. Create additional ToFu Improve conversion on existing pipeline (greater/ faster…