Real Startups Never, Ever Discount Their Prices


Avoid a simple pricing mistake which could sink your startup. Vendors often respond by discounting their prices at the 11th hour, in the hopes a lower price will spur a purchase. Protection – Consider offering “pricing protection” to users who are particularly price-conscious.

Startup Pricing: Are You Selling A Giffen Product?


In his premier film appearance in the blaxploitation send-up “I’m Gonna Git You Sucka,” Chris Rock inadvertently addresses a key pricing challenge faced by most entrepreneurs. Watch this 93-second clip and see if you can identify the pricing pitfall addressed in this humorous snippet.

Demand pull – cost push.


Place your cash bets behind proven demand. The term, “demand pull – cost push” was created by the great economist, John Maynard Keynes, to describe the two primary drivers of economic inflation. Demand pull: too much demand for a product or service and not enough supply cause a competition for the product that drives prices higher without increasing the intrinsic value of the product. Cost push – demand pull.

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Your Product Needs to be 10x Better than the Competition to Win. Here’s Why:

Both Sides of the Table

He said it was better than the Yellow Pages because he would provide pricing transparency. They would launch quickly and test whether or not there is any demand. Last night I had the great privilege to interview Bill Gross , one of the Internet’s true pioneers.

Recession-proof Pricing

SoCal Tech Calendar

Thursday, November 6, 2008 -- "Recession-proof Pricing Strategies for a Multi-platform World" Technology Council. Today's technology companies increasingly must deliver products on multiple platforms to satisfy customer demand and competitive pressures. Each delivery platform requires a different pricing model that attempts to maximize profits, but also impacts the company's infrastructure, channel, and competitive positioning.

Postmates’ newest feature is like Uber POOL for food delivery

TechCrunch LA

The feature illustrates how Postmates, one of the earlier entrants to the billion-dollar food delivery wars , is trying to remain competitive by appealing to price-sensitive customers. Postmates Party is the latest innovation in on-demand delivery that will help us deliver on this vision,” Postmates CEO and co-founder Bastian Lehmann said in a statement.

Why buy IT? Why buy MINE? Why buy NOW?


Sometimes, companies do this by creating demand where none existed before, such as for Listerine in the early days with a campaign to eliminate halitosis, the dreaded bad breath that consumers had no name for and did not think of as a need before that most successful advertising campaign.

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Can you overcome five risks and create wealth?


And fifth: Competitive risk. . Of course, we are speaking of increased valuation of your company when we speak of “wealth.” Especially if you are in the early stage of growing a business, these five risks can and often do derail entrepreneurs before realizing the riches of a great exit.

How to Talk About Valuation When a VC Asks

Both Sides of the Table

VC firms see thousands of deals and have a refined sense of how the market is valuing deals because they get price signals across all of these deals. A second thing a VC may be trying to determine is whether your last-round valuation was significantly over-priced.

What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

There is much discussion online and also in small, private groups, about why the price of technology companies – public and private – are falling. It pains me to see the typical (and predictable) responses on Twitter, “VCs want prices to drop!”

Can you profit by serving early adapters?


It did not hurt that Apple always seemed to trump the competition in design of the product and the product’s user interface too. Marriott called theirs “tier pricing”. In the meantime, we sold a second system to a large timeshare resort in Orlando for the same price.

What Happens When Startups Turn from Their Innovation Stage to Operational Excellence?

Both Sides of the Table

In the case of MakeSpace we had huge initial successes in New York City as Rahul led the scaling of our drivers, our trucks and our warehouses and we figured out the right price points to beat the local competition. and we were met with weak demand, slow growth and high costs.

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How to Out Amazon, Amazon

Both Sides of the Table

If a consumer will pay a fixed price for a product or service then the battle over who gets the margin in any sale is between the person who merchandises a product and the person who manufactures it.

Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. When prices are too high I just pass.

Opoli Dangles $5 Rides To LAX To Break Through Ridesharing Noise


Los Angeles-based ridesharing service Opoli --which faces rather daunting competition from Uber and Lyft--is hoping to break through the ridesharing noise, with an offer of $5 for a trip to LAX. Opoli offers up iOS and Android apps which let users book both on-demand and reserved rides. The company said users need to select the "Opoli" ride option in its app to get the special pricing.

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Why You Should Make Your Competitors Your Frenemies

Both Sides of the Table

Conventional wisdom in most companies is that “the competition is the enemy&# – it’s the rallying cry to dig deeper, get more features out the door, issue press releases citing differences and attack the competition’s weaknesses in sales presentations.

All The Questions You Wanted Answered about Bird Scooters and Their Recent $300 Million Funding

Both Sides of the Table

While this reaction to such a valuation is understandable, to anybody who has seen the meteoric rise in consumer demand and actual revenue the valuation is much less surprising and may turn out to be quite conservative.

MakeSpace Raises an Additional $17.5 million and Unveils Strategy to Make Public Storage the Next Blockbuster Video

Both Sides of the Table

They have high-priced property and zero innovation. It tested our beliefs about pricing, products and marketing overall of our service. First, customers in these new markets didn’t want to buy in “bins” and they demanded furniture.

The Loneliness of Success that Nobody Talks About

Both Sides of the Table

They suffered in trying to live up to public perceptions and the demands to continue their successes.

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Understanding the Underbelly of Online Marketing & Why You’ll Lose if You Don’t

Both Sides of the Table

It’s building a product that is substantially differentiated, and, as Bill Gross, one of the most prolific tech entrepreneurs of our era says, “ It needs to be 10x better than the competition ” (because if you shoot for that then in competitive markets you might achieve 3x.

6 Hiring Lessons from Vince Lombardi


It has a price. You have to pay the price to win and you have to pay the price to get to the point where success is possible. Most important, you must pay the price to stay there.”. Life on a demanding team sometimes requires sacrifices, whether that means late nights, working on a weekend, or going the extra mile when it really counts. You simply cannot teach competitiveness; people either have it or they don’t.

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The Audacious Plan to Make Electricity as Easy as WiFi

Both Sides of the Table

Was there consumer demand? If electricity could be transferred like WiFi but as safe as a soundwave we use on pregnant women’s bellies and at a price-point that was attractive this is a multi-billion market. When I first met Meredith Perry she was 24.

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The Case For & Against Cryptocurrencies (for those tired of all the noise)

Both Sides of the Table

This market structure in which the few, large players use their market position to eliminate competition is inevitable. In more than a decade of writing about the Internet and tech-enabled businesses I’ve learned that mobs don’t do nuance well.

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Five Trick Questions Every Entrepreneur Should Answer Before Asking For Money


Consider the situation in which the entrepreneur wants to accept a financially life-changing offer to sell her company which is vetoed by the investor because the price does not meet its minimal investment return criteria.

The most important person on the startup team


And what upsets people is that there are different quantities of those components available in the economic marketplace; and the law of supply and demand is pretty good about consequently assigning a value to them. By David S. Described by BusinessWeek as a “world conquering.

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Don’t Let Faux Unicorns Screw Up Your Financing


The constant media coverage of the aberrant unicorn valuations has caused otherwise level-headed entrepreneurs to expect investors to participate at prices which are detached from their startups’ fundamentals. A version of this article previously appeared on Forbes.

How to Decrease the Odds That Your Startup Fails

Both Sides of the Table

So when Sam Rosen came to me with the idea of disrupting storage with a product that is priced cheaper than existing incumbents and he could build a product that is a better service I was intrigued. What price will your customer ultimately accept? This is based on “price elasticity” and you can google that to understand it better. Competition. Many startup businesses – tech or otherwise – fail.

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Eight Startup Tips From Mark Zuckerberg


" When asked about the competition he feared most, Bill Gates is alleged to have said, "the two guys inventing away in a garage somewhere." Note: This is an installment in the Iconic Advice series.

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How Many Investors Should You Talk to in a VC Fund Raise? And How Do You Prioritize?

Both Sides of the Table

People who believe the former believe that you should see the market demand before too many people know you’re “in market.” As a VC I of course want you to come see only me because that means I have no competition and have time to properly get to know you.

ConTraps Part III – Contract Traps Entrepreneurs Should Avoid At All Costs


Agree to Bundling Without a Minimum Price. Although necessary, “stepping stone” approach of initially utilizing smaller VARs to enter new geographic markets can become problematic as your business grows, because large VARs often demand uncontested, broad, multi-country coverage.

Address the five risks to increase your valuation.


If a company truly needs five million dollars to get to breakeven, investors that provide the first million are greatly at risk of the company failing to raise the remaining capital or of subsequent investors valuing the company at a lower price than the first investors, causing a “down round” in which the early investors are punished for taking the first risk. And fifth: Competitive risk.

Understanding How The Innovator’s Dilemma Affects You

Both Sides of the Table

This is important because the customers they serve (the red line) demand a product that meets their complex requirements. In fact, the incumbent is usually very dismissive of this new competition as our the large buyers of the incumbent’s products.

What Would Happen if you Built the Reverse of Amazon? It Might Look Something Like This …

Both Sides of the Table

” Bill Gross, who is one of the Godfathers of the Internet, once told me, “ If you don’t design a product that is 10x better than the competition then you’ll never build anything truly big or amazing.” Amazon.

Why Hulu is the OPEC of Online Video

Both Sides of the Table

The philosophy of OPEC has been that if they can limit the amount of oil supplied to the world they can maintain high prices in a world where demand and competition should naturally have downward pressure on oil prices. This article originally appeared on TechCrunch.

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Why buy IT? Why buy MINE? Why buy NOW?


Sometimes, companies do this by creating demand where none existed before, such as for Listerine in the early days with a campaign to eliminate halitosis, the dreaded bad breath that consumers had no name for and did not think of as a need before that most successful advertising campaign. Product differentiation is absolutely necessary to make a sale when there is visible competition, as there usually is in any sale. What a powerful set of three questions.

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