Premium Enterprise Pricing
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A discussion about how companies often underprice their premium products, using examples from newsletter businesses to illustrate the potential of enterprise pricing strategies.
Key Pricing Strategy Insight
- The difference between $300/year and $30,000/year products often requires less additional work than the price difference suggests
- Companies frequently make the mistake of charging too little for premium offerings
- Enterprise products can command much higher prices with relatively similar effort
Example Business Model Transformation Ideas
Data-Related Premium Products
-
Salary benchmarking for crypto companies
- Collect user salary data and job titles
- Package insights for HR departments
- Sell to corporate customers instead of individuals
-
Sentiment Analysis Services
- Track retail investor behavior and opinions
- Package data for banks and large buyers
- Focus on Discord and community insights
- Provide professional analysis of informal channels
Organizational Intelligence
- Create detailed org charts for crypto companies
- Map out who's behind different projects
- Include contact information
- Provide trust analysis and legitimacy scoring
- Target banks, investors, and corporate buyers
Value-Based Pricing Benefits
- Requires fewer customers to achieve same revenue
- Often involves similar work effort as lower-priced products
- Creates opportunity for additional premium services
- Conferences
- Direct access
- Custom research
- Enterprise support
Implementation Strategy
- Start small with enterprise offerings
- Focus on data that's within core competency
- Target what advertisers and corporate clients would want
- Package information more professionally than current sources
- Build trust analysis into the product offering
The key insight is that charging $30,000 instead of $300 doesn't necessarily require 100x more work, but can generate significantly more revenue with fewer customers.
30:02 - 31:40
Full video: 58:52SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.