In a recent episode of Buying Online Businesses, I had an engaging conversation with host Jaryd Krause about the challenges of buying and scaling online businesses. We discussed Tesla’s innovative pricing strategy, the importance of reverse engineering products to meet customer needs, and shared practical techniques for gathering willingness-to-pay data and developing effective pricing strategies. This episode offers actionable insights for refining pricing approaches in both B2B and B2C contexts.
Key topics we covered in this episode:
- Tesla’s strategic pricing approach
- Reverse engineering products to align with customer preferences.
- Concept of value engineering and customer willingness to pay.
- Importance of honest conversations with customers.
- B2C pricing focus on perceived value and emotions.
Timestamped Outline
19:53 Understanding value-based pricing for businesses.
22:16 Understanding customer needs and market competition.
24:50 Value-based pricing emphasizes understanding customer value.
40:55 Gaining useful information from customer questions.
45:59 Price point questioning method for effective pricing strategy.
Potent Quotables
The Impact of Emotional Jobs in B2B Markets:
“There’s an old cliche in the US that said no one ever got fired for buying IBM. Well, that’s important. If you’re leading a buying committee for a major piece of hardware or software for your business, there’s real social risk and status risk to putting your name and saying, this is the product that I recommend we go with.”
— Dan Balcauski