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Any resources for finding 'Price Market Fit'?
I read a great article a while back on finding price market fit. Can anyone suggest any resources.
Hey Kieran, this talk by @patticus is probably the best overview on how to figure it out: https://growthhackers.com/videos/how-to-increase-saas-monetization-by-11
Cheers Morgan. Will check this out!
@Morgan is spot on - @patticus is my go to for anything pricing related.
These are some of my personal favourite resources on the topic:
Sean Ellis on using survey tools to understand PMF: http://www.startup-marketing.com/using-survey-io/
David Cummings' "5 Ways to Identify Product/Market Fit": https://davidcummings.org/2013/07/04/5-ways-to-identify-product-market-fit/
My own 101 on PMF, and why it matters: https://www.cobloom.com/blog/what-is-product-market-fit-and-why-should-your-saas-business-care
Ben Horowitz on common myths of Product/Market Fit: http://blog.pmarca.com/2010/03/20/the-revenge-of-the-fat-guy/
and last, but not least, the post that started it at all, by Marc Andreessen: http://pmarchive.com/guide_to_startups_part4.html
The Van Westendorp Price Sensitivity Meter is a very old and somewhat confusing tool, but definitely still relevant and a great way to measure how price sensitive your potential customers will be.
you can check out this blog post: http://www.priceintelligently.com/blog/the-five-best-saas-pricing-pages
It was written by Patrick Campbell, the Co-Founder of Price Intelligently. Finding 'Price Market Fit' is their business model, so they know what they're talking about ;)
Thank, we ended up using this principle as it happens.
I would first recommend getting on the phone with a bunch of potential customers. Ask them about what solutions they currently use to do X (don't explicitly tell them about the inns and outs of your alternative solution at this step; doing so will bias their responses). Why did they pick that solution? How do they use it now? What was the process of purchasing that solution? Are there any pain points? After you get this context (which in itself is invaluable market research), present your concept: "What if there was a product that did Y? Would that be useful to you?" If the answer is yes, then follow up and ask: "How much would you be willing to pay for something like that?" Usually it's easier for folks to give you a range or frame things in terms of a monthly cost. Do a bunch of these types of interviews with very similar people and you'll get a much better sense of this buyer persona's willingness to pay. The worst thing you can do with regards to pricing strategy is to shoot from the hip or base this decision on what your competitor does. After all, your product may tap into a benefit that's entirely new - and even more valuable!
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