🏷 Pricing in dollars over time
|Mike Dariano||May 17|
After a break, we’re back with these brief reframings. A change in your point-of-view is worth at least forty-IQ.
We think about total price in terms of dollars but not time. With financing we get the time part and it’s a helpful way to re-think how we price things.
Car sales are up, in part, because of low rates and longer loan terms. Not because cars are cheaper.
Home sales are not down, in part, because of low rates on mortgages.
Digital subscriptions are up, in part, because people like supporting independent publishers like Ben Thompson.
Not matter what business you are in, the most important price is what can I pay now. Car payments and mortgages are compared in terms of a monthly budget. Subscriptions we are still figuring out.
Goods and services are paid-in-full up-front. That’s another way to do it.
Much like different mediums have better messaging (e.g. long conversations are great on podcast but not tv), different business probably have better pricing. The goal is to find how consumers think, and try to serve that.
Update. I’m looking to conduct some Jobs-To-Be-Done interviews. I’ll work for you, for free, to practice the techniques. Here’s what I know so far. If you’re interested, please reply.