Pricing-first strategy

product ladder pricing formula

Pricing-first strategy

I'm sure you have heard about the Pareto principle. Focus on the 20% of your business that brings 80% of your income.

My drawing is based on the book: "80/20 in business" by Perry Marshall (which I haven't read in-depth yet).

His product-ladder formula triggered a new way of thinking about price in me.

The "normal" way is to define your offer first, and then decide on the price, no?

The new way is to get creative: What could you offer for 100$? What for 400? And what could you do for the 1% client?

I have to admit that before I drew this, I wasn't even aware of the top rung of my ladder. And frankly, I didn't believe I could find my 1% person. But to my surprise, they found me. (Here on Linkedin!)

I'm curious if it is just me who was surprised by the "pricing first" idea.

How do you set your prices?

You can download a worksheet with the graphic above here: