Over the years flying overseas on a ‘public jet’ has become seriously more comfortable. Sitting back watching a movie, having something to eat and drink in air conditioned comfort ain’t that bad, despite the ill founded whinging. Yet, the time it takes to fly across the nation or globe hasn’t improved much in 50 years – or has it?
Yes, it still takes around 8 hours to fly London to New York, but it is less than 10% of the price it was in 1965. That means we only have to work 10% of the hours we did 50 years ago to afford the ticket. Time and money are inextricably linked. So on this measure it is 90% quicker to get there.
Something we should think about with what we sell isn’t just the time it takes to do something, but the time it takes to acquire the ability to do it.
There are many ways to measure money, but the the best measure I know of is time. It’s the only asset we can never get more of.
You should totally read my book – The Great Fragmentation.
Pricing is a difficult thing to get right in the marketing mix. Often we get all other 3 P’s (product, place promotion) right and that wrong…. and instead of revisiting it, we mess with the product.
There is no hard and fast answer on how to price a product in a startup or a web service, especially as it pertains to pricing models. But there are two simple pieces of advice I can give.
1. If there is an established pricing method which is accepted and liked in the market, go with it.
2. If consumers generally despise how things are priced in the category you are entering, change the model, and let everyone know about it.
In the first example the ethos is this: It’s hard enough gaining cut through with our product without adding unnecessary complexity to the decision making process. Especially when you have a new and untested offer.
In the second example the ethos is this: The pricing model becomes the main feature. It’s the reason for the switch to you, other parts of the marketing mix will then require far less innovation to gain the cut through a startup needs.