{"id":252338,"date":"2021-05-18T10:40:17","date_gmt":"2021-05-18T07:40:17","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/heres-how-you-should-price-your-deep-tech-startups-product\/"},"modified":"2021-05-18T10:40:17","modified_gmt":"2021-05-18T07:40:17","slug":"heres-how-you-should-price-your-deep-tech-startups-product","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/heres-how-you-should-price-your-deep-tech-startups-product\/","title":{"rendered":"#Here\u2019s how you should price your deep tech startup\u2019s product"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2cbbc71c2eb\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2cbbc71c2eb\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-how-you-should-price-your-deep-tech-startups-product\/#1_Focus_on_perceived_value\" >1. Focus on perceived value<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-how-you-should-price-your-deep-tech-startups-product\/#2_Regular_revisits\" >2. Regular revisits<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Here\u2019s how you should price your deep tech startup\u2019s product<\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/img-cdn.tnwcdn.com\/image?fit=796%2C417&amp;url=https%3A%2F%2Fcdn0.tnwcdn.com%2Fwp-content%2Fblogs.dir%2F1%2Ffiles%2F2021%2F05%2Fmoney-price-deep-tech-startup-gq.png&amp;signature=a5aacaeeed3ee6c3ca09d3718128cfb2\" \/><\/p>\n<div><span>There\u2019s no universally agreed-upon definition of a \u201cdeep tech\u201d startup, but in my experience, they\u2019re usually product-centered businesses whose vision is set out by technical founders that focus on scientific and engineering innovations.\u00a0<\/span><\/p>\n<p><span>That means their culture is usually all about the product, with founders and core teams rarely having any interest in, or giving thought to, their marketing and sales strategy. <\/span><\/p>\n<p><span>While this focus can be a strength in product development, it\u2019s an issue when it comes to one hugely important area: pricing. <\/span><\/p>\n<p><span>Many deep tech startups fail to fully develop or consistently leverage an effective pricing strategy, especially first-time founders in their business\u2019s early stages. As deep tech products are often sold in a business-to-business (B2B) environment, with long-term enterprise sales cycles that require a finely tuned strategy, this can be especially problematic.<\/span><\/p>\n<p><span>Companies operating in a business-to-consumer (B2C) model can easily ascertain a customer\u2019s willingness to pay by looking at what competitors or adjacent companies are selling on store shelves. B2B startups don\u2019t enjoy that luxury.<br \/><\/span><\/p>\n<p><span>Since they can\u2019t go directly to consumers to discover willingness to pay, the pricing of B2B deep tech products instead depends on the product doing two things:<\/span><\/p>\n<ol>\n<li aria-level=\"1\"><span>Having a <\/span><i><span>literal value<\/span><\/i><span> for a customer\u2019s bottom line<\/span><\/li>\n<li aria-level=\"1\"><span>Having a <\/span><i><span>psychological value <\/span><\/i><span>to the customer<\/span><\/li>\n<\/ol>\n<p><span>Literal value is determined by <\/span><i><span>how well <\/span><\/i><span>a product can help customers cut costs or grow their revenue. Psychological value, however, is shaped by how a customer <\/span><i><span>feels <\/span><\/i><span>a product will impact their business.\u00a0<\/span><\/p>\n<p><span>While this might seem like a subtle distinction, it\u2019s an important one. <\/span><\/p>\n<p><span>Humans act on intuition and often make judgments with incomplete information, so nailing psychological value is extremely important, as is adapting your <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach to conditions in the market. <\/span><\/p>\n<p><span>Making a good first impression and making the initial perceived value of a product seem high is often what determines whether a sale can happen, rather than the detailed breakdown of efficacy.<\/span><\/p>\n<p><span>That\u2019s why the very first step to pricing your product correctly is to <\/span><em>know your own costs<\/em>.<\/p>\n<p><span>When companies first begin to explore what the cost of their product should be, they often fail to consider their own internal costs. Running out of money is also the second biggest reason most startups fail.\u00a0<\/span><\/p>\n<p><span>So understanding where your breaking point for pricing lies is the first step in understanding what your pricing should be. For example, if a service costs $500 a month in server costs and maintenance, you wouldn\u2019t want to come lower than that.<\/span><\/p>\n<p>But in my experience, once you know your own costs, pricing for deep tech startups boils down to two things:<\/p>\n<h2><span class=\"ez-toc-section\" id=\"1_Focus_on_perceived_value\"><\/span><b>1. Focus on perceived value<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span>Maximizing your perceived value is the next rule in your pricing strategy. And when it comes to a B2B context, the best way to maximize your perceived value is to make it easy for a prospective customer to imagine how a product will fit into their lives \u2014 and how it will continue to do so over time.\u00a0<\/span><\/p>\n<p><span>Keep in mind though that the customer may not always be the user, especially within large organizations. So it\u2019s important to understand who you are presenting to when presenting your pricing.\u00a0\u00a0<\/span><\/p>\n<p><span>If a customer can intuitively tie your product \u2014 and its attached costs and benefits \u2014 into their own ways of measuring progress and success, then they\u2019ll need to put in far less effort to understand it.\u00a0<\/span><\/p>\n<p><span>Humans tend to default towards the path of least resistance, so when it comes to pricing strategy you should reduce their cognitive load and tie pricing into the metrics they use internally.\u00a0<\/span><\/p>\n<p><span>In the B2B deep tech case, that means your pricing strategy should tie into the productivity model of a customer. For example, setting and advertising your product\u2019s initial price relative to the amount of man-hours saved, which will change based on need and want.<\/span><\/p>\n<p><span>In addition, don\u2019t be afraid to leverage time-tested strategies such as benchmarking your prices relative to what you know of your competitors. Price is often used as a proxy for quality, so make sure to advertise a higher price if you can suggest your product\u2019s returns are correspondingly higher than a competitor<\/span><\/p>\n<p><span>Going back to our previous example, you could compare your man-hours saved between your competitor\u2019s product and your own, and set your prices appropriately to reflect this difference. If you can prove a positive return on investment, then pricing falls right into place.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_Regular_revisits\"><\/span><b>2. Regular revisits<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span>I find that for deep tech startups finding a way to translate their novel products into something that can signal psychological value is often one of the hardest tasks at hand.\u00a0<\/span><\/p>\n<p><span>Ultimately, prices need to have a quick emotional appeal to decision-makers, whose choices are often split-second. To encourage these decisions to be positive, prices should be easy to understand and something that can quickly be tied to a customer\u2019s business model.\u00a0<\/span><\/p>\n<p><span>The best way to achieve this is through setting prices that clearly relate their cutting-edge work to the operations of their prospective customers and adapting prices to the state of the market.\u00a0<\/span><\/p>\n<p><span>If you\u2019re a deep tech startup and you\u2019ve been having no luck with price, try following the above tips to see if you can raise the perceived value of a product first, before contemplating cutting the price. <\/span><\/p>\n<p><span>But if you find that your current price is unviable and no psychological burnish can make it work, never feel afraid to change it.\u00a0<\/span><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/technology\/\" target=\"_blank\" rel=\"noopener\">Technology category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thenextweb.com\/news\/price-deep-tech-startup-product\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Here\u2019s how you should price your deep tech startup\u2019s product&#8221; There\u2019s no universally agreed-upon definition of a \u201cdeep tech\u201d startup, but in my experience, they\u2019re usually product-centered businesses whose vision is set out by technical founders that focus on scientific and engineering innovations.\u00a0 That means their culture is usually all about the product, with founders&#8230;<\/p>\n","protected":false},"author":1,"featured_media":252339,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/img-cdn.tnwcdn.com\/image\/growth-quarters?filter_last=1&fit=1280,640&url=https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2021\/05\/money-price-deep-tech-startup-gq.png&signature=e801e3c0abd70054c4babbfd0b4b3cf7","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-252338","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/252338","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=252338"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/252338\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/252339"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=252338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=252338"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=252338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}