Pricing
Pricing lenses
Last reviewedWhat is Pricing lenses?
Three views of price: cost sets the floor, value to the customer sets the ceiling, and competitor prices show where in that range you can land.
When should you use Pricing lenses?
Any pricing question.
What are its limits?
Cost-based pricing ignores what customers will pay, and competitor prices can anchor you too low when your product is better. Value is the hardest to estimate and usually the most useful.
How do you tailor it to a case?
Always reach the value lens: estimate what the product is worth to the customer in money, then capture a fair share of it, and check how volume will respond.
Use a framework as a source of ideas, then put a structure built for this specific problem on the table. Reciting a framework by name is a common way to lose marks.