These are the seven forces to factor into your Pricing decisions - whether it's for web products or professional services.

1. PRICING
7 forces to factor into your thinking

2. There are 30-40
pricing experts
on the planet.
I’m not one of them.
My name is
Chris Lema and I’ve
been building hosted
web-based software
(SaaS) since 1994.
Whenitcomestopricing,I’ve
justmadelotsofmistakes.

3. It’s not just about Price.
It’s about environmental
scanning, business
modeling & sustainability.
1

4. It’s not about
Demand Curves.
You need too many prices.
You need to offer them too long.
You need no one else to know.
2

5. Mass is not a
business model.
Price products so that
every product or service
sale makes sense.
3

6. The 7 Pricing Forces
4

7. First, understand the
Players in the Market
Don’t say you have no competition.
You just sound naïve or silly.
5

8. Second, understand
Your Prospects
Knowing their pain and the benefits
of solving those pains helps you know
how to set your price.
6

9. Third, understand
Your Positioning
You only have three choices –
cheap, competitive, or classy.
7

10. Fourth, understand
Your Profit Margin
Know what your “floor” is, so you can
decide if you need to change other
parts of your model.
8

11. Fifth, understand
Your Product Strategy
Will you sell add-ons? Will your
product have a network effect?
9

12. Sixth, understand
Pricing Psychology
Learn what says “premium” and what
says “discount” and leverage it.
10

13. Seventh, evaluate any
Problems with Pricing
Sometimes the price isn’t what’s wrong
and lowering prices won’t help you.
11

14. Special Cases
with Pricing
• Calculating Hourly Rates
• Project-based Pricing
• Scope Creep
• Premium Segments
12

15. Questions?