{"id":15974,"date":"2019-06-30T12:52:18","date_gmt":"2019-06-30T10:52:18","guid":{"rendered":"https:\/\/www.bm-t.de\/2023-en\/bmt-venture-insights-3-19-the-price-is-right\/"},"modified":"2024-03-08T12:53:46","modified_gmt":"2024-03-08T11:53:46","slug":"bmt-venture-insights-3-19-the-price-is-right","status":"publish","type":"post","link":"https:\/\/www.bm-t.de\/en\/2019-en\/bmt-venture-insights-3-19-the-price-is-right\/","title":{"rendered":"bm|t Venture Insights 3\/19: The Price is&nbsp;Right"},"content":{"rendered":"<p>Star\u00adtups can have very dif\u00adfer\u00adent goals and thought processes con\u00adcern\u00ading pric\u00ading when ini\u00adtially try\u00ading to get trac\u00adtion in a mar\u00adket.&nbsp; Some star\u00adtups might be so focused on gain\u00ading a foothold in a mar\u00adket and get\u00adting a crit\u00adi\u00adcal mass of cus\u00adtomer feed\u00adback that they are will\u00ading to give their solu\u00adtion away at first while oth\u00aders might be highly focused on cash burn and feel com\u00adpelled to get to breakeven with their first customers.<\/p>\n<p>While we are far from aca\u00add\u00ade\u00admic experts on the sub\u00adject of pric\u00ading, and every sit\u00adu\u00ada\u00adtion is clearly unique, we decided to write down some of our thoughts and gen\u00aderal guide\u00adlines that we hope will be useful:<\/p>\n<ul>\n<li>It is eas\u00adier to lower price than to raise it. And price anchor\u00ading is an actual phe\u00adnom\u00ade\u00adnon.&nbsp; How\u00adever,&nbsp;<strong>piv\u00adots can pro\u00advide excel\u00adlent oppor\u00adtu\u00adni\u00adties<\/strong>&nbsp;to rethink pricing.<\/li>\n<li><strong>Early cus\u00adtomers are usu\u00adally highly-inter\u00adested<\/strong>&nbsp;in the solu\u00adtion and are often will\u00ading to fund fur\u00adther devel\u00adop\u00adment, either as a sep\u00ada\u00adrate charge (NRE\/Installation fees) or in the form of higher prices in the early days of the rollout.<\/li>\n<li>Cus\u00adtomiza\u00adtion requests should be priced extremely high, espe\u00adcially if the degree of cus\u00adtomiza\u00adtion is so great that the cus\u00adtomer-spe\u00adcific devel\u00adop\u00adments are dif\u00adfi\u00adcult to trans\u00adfer to future poten\u00adtial cus\u00adtomers.&nbsp;&nbsp;<strong>One-time rev\u00adenue oppor\u00adtu\u00adni\u00adties are often more dis\u00adtrac\u00adtion<\/strong>&nbsp;than they are worth, espe\u00adcially when fac\u00adtor\u00ading in oppor\u00adtu\u00adnity costs \u2013 which are often overlooked.<\/li>\n<li>If the solution\/technology is truly unique, it should not be nec\u00ades\u00adsary to employ low pric\u00ading as the means to win cus\u00adtomers. The extra time spent&nbsp;<strong>look\u00ading for first cus\u00adtomers who truly value the offer\u00ading<\/strong>&nbsp;is well spent, as opposed to reduc\u00ading price just to con\u00advert the first&nbsp;deal.<\/li>\n<li>The closer the solu\u00adtion is to its large-scale roll\u00adout state, the more pric\u00ading should already be set at a level that will allow for broad adop\u00adtion. SaaS offer\u00adings are often in this cat\u00ade\u00adgory.&nbsp;<strong>Addi\u00adtional devel\u00adop\u00adments are bet\u00adter included in upgrade pack\u00adages<\/strong>&nbsp;or sold as Add-on mod\u00adules, as opposed to dras\u00adti\u00adcally alter\u00ading the core price over&nbsp;time.<\/li>\n<li>Usu\u00adally price is highly-vis\u00adi\u00adble, prob\u00ada\u00adbly much more vis\u00adi\u00adble to most stake\u00adhold\u00aders than a company\u00b4s long-term plan to pen\u00ade\u00adtrate a mar\u00adket.&nbsp; Star\u00adtups should set&nbsp;<strong>price at a level that gives employ\u00adees and part\u00adners a sense of pride and secu\u00adrity<\/strong>&nbsp;that the busi\u00adness has the poten\u00adtial to cre\u00adate sub\u00adstan\u00adtial value and reduce its reliance on investor fund\u00ading over&nbsp;time.<\/li>\n<\/ul>\n<p>With many early-stage Investee-Part\u00adners now enter\u00ading the com\u00admer\u00adcial\u00adiza\u00adtion phase, we have recently enjoyed engag\u00ading in numer\u00adous pric\u00ading dis\u00adcus\u00adsions. We hope we have been able to offer some valu\u00adable assis\u00adtance in this area and that \u201cthe price is&nbsp;right\u201d.<\/p>\n<p><em>Your bm|t&nbsp;Team<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Star\u00adtups can have very dif\u00adfer\u00adent goals and thought processes con\u00adcern\u00ading pric\u00ading when ini\u00adtially try\u00ading to get trac\u00adtion in a mar\u00adket.&nbsp; Some star\u00adtups might be so focused on gain\u00ading a foothold in a mar\u00adket and get\u00adting a crit\u00adi\u00adcal mass of cus\u00adtomer feed\u00adback that they are will\u00ading to give their solu\u00adtion away at first while oth\u00aders&nbsp;might&nbsp;[\u2026]<\/p>\n","protected":false},"author":2,"featured_media":15567,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"wp_typography_post_enhancements_disabled":false,"footnotes":""},"categories":[148,250],"tags":[253],"class_list":["post-15974","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-2019-en","category-insights","tag-insights-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/posts\/15974","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/comments?post=15974"}],"version-history":[{"count":0,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/posts\/15974\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/media\/15567"}],"wp:attachment":[{"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/media?parent=15974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/categories?post=15974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/tags?post=15974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}