GUEST MENTOR, Maynard Webb, founder of Webb Investment Network: There’s a popular myth that great products sell themselves. In reality, it’s always a lot more complicated. There’s an art and a science to selling a product and service, and selecting the right price is one of the most complex parts of the process.
Pricing isn’t an event, it’s an educated foray into data-driven tests and trial-and-error. There is no such thing as the “best price,” but rather a price that is optimized to meet very specific business objectives. Sometimes, there isn’t a price at all. For example, when the goal is network effects, pricing the service as free, as Gmail, Dropbox and Spotify did, may be the best strategy to secure new users. Alternatively, if the aim is building an exclusive brand or high-touch service that caters to a select audience, pricing on the high end of the spectrum can be the best approach…….