Lenny's Podcast: Product | Career | Growth
The art and science of pricing | Madhavan Ramanujam (Monetizing Innovation, Simon-Kucher)
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But when we talk about pricing, many people quickly gravitate to dollar figures. That's just a price point. That's a dollar figure. But when we think about price, we think about it as a measure. Like, you know, leether is a measure of volume, price is a measure of value. And when you think of it this way, it really stands for do people actually want your product and would they actually buy it? And that is the whole willingness to pay conversation. And entrepreneurs and companies need to do this much earlier so that they can understand how they are on the right track. Welcome to Lenny's podcast. I'm Lenny and my goal here is to help you get better at the craft of building and growing products. Today, my guest is Madhavan Ramanujam. Madhavan is the author of "Monetizing Innovation," the most widely read book on pricing strategy. He's also senior partner at Simon Kutcher and Partners, which is the premier consulting agency for companies looking to get help with their pricing. And unsurprisingly, when I ask people on Twitter who the smartest person on pricing is, Madhavan was by far the most mentioned. In this episode, we get deep into all manner of pricing strategy, especially focusing on five lessons for product teams on thinking about pricing. Enough talking, let's get into it. I bring you Madhavan Ramanujam after a short word from our wonderful sponsors. This episode is brought to you by Lemon.io. You've achieved product market fit, you're able to activate, engage, and retain your customers, but you don't have the engineers that you need to move as fast as you want to because it's hard to find great engineers quickly, especially if you're trying to protect your burden rate. Meet Lemon.io. Lemon.io will quickly match you with skilled senior developers who are all vetted, results oriented and ready to help you grow, and all that at competitive rates. Let's choose Lemon.io because they offer only hand-picked developers with three or more years of experience and strong, proven portfolios. Only 1% of Canada to apply get in, so you can be sure that they offer you only high-quality talent. And if something ever goes wrong, Lemon.io offers you a swift replacement so that you're kind of hiring with a warranty. To learn more, just go to lemon.io/lenny and find your perfect developer or tech team in 48 hours or less. And if you start the process now, you can claim a special discount exclusively for Lenny's podcast listeners. 15% off for the first four weeks of working with your new software developer. Grow faster with an extra pair of hands, visit lemon.io/lenny. This episode is brought to you by Mixpanel offering powerful, self-serve product analytics. If you listen to this podcast, you know that it's really hard to build great product without making compromises. Now when it comes to using data, a lot of teams think that they only have two choices, make quick decisions based on gut feelings, or make data-driven decisions at a snail's pace. But that's a false choice. You shouldn't have to compromise on speed to get product answers that you can trust.
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