Let’s suppose that we could build this and it was that cheap… you could put it on your credit card. Would you buy it? – Jason Cohen, WP Engine Founder The goal with closing during solution interviews in customer development is to find out if
The first — and most important — obstacle for a B2B startup is ‘we can do without it’. – David Chabot, B2B Technology Marketer Business problems that matter have owners who have budgets and a willingness to use those budgets to remove a pain. With
Even if your product has a low startup fee — or if it’s completely free (freemium or free trial) — it has a cost. Time is an investment. Training and implementation is always needed. Mobilizing a team to use a new solution is a risk.
“Pricing is all about setting the right perception.” – Neil Davidson, Don’t Just Roll the Dice Author A pricing model is one of the business assumptions that changes the most. The price you choose initially will certainly be wrong, but it won’t be final. You
As a rule of thumb, you can only capture a portion of the value that your customers get from your product. In other words, if your customers save $500k a year because of your product, you can only ask for a fraction of that amount.
Long-time supporter and Lean B2B community creator, Arne Van Balen put together the following deck to help entrepreneurs and innovators explore and evaluate B2B revenue models: Arne’s presentation is very dense with a lot of great examples. What a Revenue Model Is Revenue models
Discounts (or added services) are a marketing investment to help land early customers. Your initial offer should take into consideration the value businesses provide and the reduction in marketing costs that your first few case studies will bring. Perhaps discounts can help sweeten the deal,