The launch price you can’t take back

Pricing something nobody has bought before is an experiment, not a calculation, and most firms design the experiment so it teaches them nothing.

By Steve 5 min read
Abstract bridge artwork for The launch price you can’t take back

A price for an existing product can be argued about with evidence. You have win rates, discount patterns, renewal behaviour, competitors’ published numbers. A price for something you have never sold has none of that. So the number tends to get built the only way it can be built, from cost, plus a margin that feels defensible, cross-checked against whatever adjacent product seems roughly comparable. It arrives in the spreadsheet looking precise. It is a guess wearing a suit. That would be tolerable if the guess were cheap to revise.…

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