On Pricing High

On one hand you find advice about giving your product away in the hope of monetizing them later. On the other hand, more recently, you find articles like this and this on the need to price it high. The latter article even goes on to say customers will be happier if you charged them more. I find these latter class of articles do even more disservice than the former.

These simply take the exact opposite position to the free idea and make it sound these are based on evidence. Simply showing a numerical example is not evidence.

None of these one size fits all advice columnists tell you to start with customers – find the different segments, what they value, what they are willing to pay for, which segments you should target and with what offering.

If you do not know your customers or why they are hiring your product how can you say they are happy because they are paying more?