Summary of It’s Price Before Product. Period.

00:00:00 - 00:20:00

The video discusses how to properly price products and avoid common failures. It is important to price products early to get customer feedback and to segment customers based on their needs. businesses should productize towards the needs of their customers instead of trying to guess which demographic segment they fall into.

• 00:00:00 The speaker provides a brief overview of how pricing can fail and how to avoid this. He recommends using innovation to survive, and discusses the various ways in which an innovation can fail. He offers advice on how to avoid these failures.
• 00:05:00 Innovation often fails due to improperly pricing products, not having a willingness to pay conversation early, and not maintaining price integrity after product launch. A nine-step framework is provided to help with monetizing innovation.
• 00:10:00 The video discusses how it is easy to price a product before developing it, as customers are not in a "negotiation" mindset. A story and example are provided to illustrate the point. It is important to price a product early to get customer feedback, which can help prioritize what is being built.
• 00:15:00 The presenter discusses the three steps of the pricing framework: price before product, acceptable price, and prohibitively expensive price. He provides a quick example of how not to do segmentation, citing how a company might segment customers based on demographic variables such as age. He argues that this is not an effective way to price products and that customers are different and have different needs. He recommends that businesses productize towards the needs of their customers instead of trying to guess which demographic segment they fall into.
• 00:20:00 The video discusses how to charge customers in a way that is more important than how much you charge. One example is charging customers per kilometre, which is a more rational approach than charging based on the amount someone is selling.