How to price something

The post argues that pricing can begin with guesses, experiments, market research, books, or competitor prices, and still lead to a sustainable business. It says the useful signal comes only after people actually pay.

Reading notes

#

• Pricing can be approached by making up a number, testing several prices, doing market research, reading pricing books, or checking what others charge.
• The author says a business can guess wrong and still be right enough to build something sustainable.
• People who have not paid cannot answer how much they would pay, because saying yes or no costs them nothing.
• The only answers that matter are dollars spent.
• The practical method is to put a price on the product, sell it, and watch whether people buy.
• If people buy, that is a yes; if they stop buying after a price change, that is a no.
• The post says the reasons behind pricing can be studied later, but the starting point should be real buying behavior.