Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

If you ever start a business selling anything at all, the very first thing you will need to realize is that you never base prices on how much something costs.

You base prices on what people are willing to pay.



Like most business advice this sounds good as a one-liner, but isn't super accurate. There are lots of businesses that need to evaluate price elasticity and substitution which is more than finding the right point on the demand curve.


There are also plenty of companies that run into trouble with excessive “value-based“ pricing, aka. The Innovator’s Dilemma, as Pager Duty is now.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: