Determine your startup's value and pricing with this free checklist template!
Review and identify value metrics, find a proxy for your value, understand your customers and how you can best capture value, familiarize yourself with the four steps to revamping your pricing, and take a closer look at SaaS pricing at three different startup stages.
This template contains the following topics:
- 1. 🧠 Value Metrics: The Secret to Successful Pricing
- 💯 The Perfect Value Metric for Customers
- 3. 🗳 Find a Proxy for Your Value
- 4. 💡 How to Understand Your Customers & Capture Value
- 🔢 Four Steps to Revamping Your Pricing
- 📊 SaaS Pricing at Three Different Startup Stages
Simply copy this template into your workspace of choice to get started! 💰
When it comes to pricing a product, there are many factors that must be taken into account. For example, what is the overhead cost of producing your product? What are the costs associated with marketing and advertising? Who is your target market? These types of questions need to be answered before you can decide on a pricing strategy for your business.
This product pricing strategy for startups template can help you collect the data and information you need to come up with the right pricing strategy for your product or service.
There are many different pricing strategies that startups can use. The most important thing is to choose the one that will be most beneficial for your business.
There are a few value metrics you want to consider in setting your prices:
How Much Revenue Can You Bring to Your Customers?
Your customers' willingness to pay (WTP) is the starting point in valuing your product. How much they are willing to pay is directly related to how much additional revenue your product or service can bring in to them.
How Much Money Can You Save Your Customers?
Another thing that will factor into their WTP is how much money your product or service can save them. If you can help them save money, they will be more likely to be willing to pay a higher price for your product.
Does Your Product or Service Improve the Efficiency of Your Customers?
If your product or service helps your customers be more efficient in their work, they will also be willing to pay a higher price for it.
Once you have considered these factors, you can begin to narrow down what pricing strategy would work best for your business.
The following are some common pricing strategies that startups use:
Cost-plus pricing
Cost-plus pricing is when you price your product at the cost of making and marketing it, plus a markup. The markup is usually a percentage of the total cost, and it covers things like overhead and profit.
Competitive pricing
Competitive pricing is when you set your price to be the same as or lower than your competitors. This strategy can be risky, but it can also be successful if you have a lower cost than your competitors.
Value-based pricing
Value-based pricing is when you set your price based on the value your product or service offers to your customers. This means that you consider things like how much revenue your product can bring in, or how much money it can save your customers.
Skimming
Skimming is a pricing strategy where you set your price high at first and then slowly lower it as you sell more products. This strategy is usually used when you have a high-priced product and want to make as much money as possible in the beginning.
Penetration
Penetration pricing is when you set your price low in order to gain a large market share. This strategy can be risky, but it can also be successful if you have a lower cost than your competitors.
Now Get Pricing
Pricing is one of the most important aspects of running a business. There are many different types of price strategies for startups in addition to the ones mentioned here. This template will help you get started on generating ideas to come up with the right pricing strategy for your business.
For more help for your startup business, take a look at all of our project templates for startups.