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1/ Pricing is a subject that tends to fly under the radar for most startups until a crisis hits

That being said, it's a critically important factor in becoming profitable for any business

Here are some tips on effective pricing from some of the best:
2/ Price is the most leveraged driver of profits

@HermannSimon: "Every business has only 3 profit drivers: price, volume and cost. Prices get the least attention, but have the greatest impact"

@destraynor: "Nothing impacts your bottom line better than improving your pricing"
3/ Your prices are probably too low

@tyler_gaffney: "Even the most confident teams price too low. Very rarely do I encounter early-stage founders who've priced too high"

@pmarca: "The #1 theme w/ our companies when they're really struggling is that they're not charging enough"
4/ Successful companies rely on innovative products & premium price points

@HermannSimon: "After 40 yrs, I'm convinced only very few companies will achieve long-term success w/ a low-price strategy"

@meraynor: "Very rarely is cost leadership a driver of superior profitability"
5/ Start thinking about price early

@MadhavanSF: "The root of all innovation evil is a failure to put the customers' willingness to pay at the core of product design"

@ttunguz: "Decide which pricing strategy to pursue & align sales/marketing/product efforts along those lines"
6/ Your prices should change as your company grows

@Patticus: "Adjusting prices on a regular basis trains customers to understand that the value is going to be changing as the product improves"

@plibin: "If you picked your price once and never changed it, it's probably wrong"
7/ To maximize profits, optimize pricing. To optimize pricing, understand your customers' willingness to pay.

@fredwilson: "You must know the price elasticity of your product. This allows you to optimize price/margins/profitability which, after all, is the goal of a business"
8/ The fundamental driver of willingness to pay is perceived value

@rorysutherland: "All value is subjective"

@mcgd: "What matters is not the distance b/w the cost to produce something and its price, but the difference b/w the price and the perceived value to the end user"
9/ Value Created + Value Communicated = Perceived Value

@peterthiel: "Outside economic theory, every business is successful exactly to the extent that it does something others cannot"

@HermannSimon: "Value alone does you little good unless you can communicate it successfully"
10/ Real buying behavior will always trump customer surveys

@jasonfried: "The only answers that matter are dollars spent"

@MadhavanSF: "If you want to transition from hoping your product will be successful to knowing your product will be successful, make price your core focus"
11/ An inability to raise prices is indicative of a weak business

@WarrenBuffett: "The single most important decision in evaluating a business is pricing power. If you have to have a prayer session before raising the price 10%, you've got a terrible business"
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