How to Price what you Sell?
Alok Rodinhood Kejriwal
Founder – 2win group &
Why this PPT?
I‟ve sold crazy s*** in the past 29 years. From
infant socks to oil drums to LC (letter of credit)
discounts to advergames to virtual cars in
mobile games. In the process, I‟ve always been
confronted with the question “How do I price
I‟ve also come across zillions of newly minted
entrepreneurs struggling with this tough
The wrong question!
After deep reflection, I have realized that the
Question itself is WRONG.
Yup. Pricing doesn‟t matter. It‟s a „side
effect‟, an „occurrence‟, a „consequence‟.
In the next few slides, I shall explain why…
Carefully study the next chart and THINK of
products and services (not related) that fit in
the (?) Boxes
Need a nudge?
If you didn‟t understand the chart, try this:
- The Top Right Box (green) represents something
that is High in $$$ (price) and Innovative
- The Bottom Right Box (blue) represents something
that is High in $$$ (price) and Ordinary
- The Top Left Box (pink) represents something that
is Low in $ (price) and Innovative
- The Bottom Left Box (purple) represents something
that is Low in $ and Ordinary
Now think of products and services that fit
Once done, go the next slide where I reveal
Let‟s examine the charts once again,
Free to Unaffordable
with Zero/Little Competition
Irrational to High Price
with Massive Competition
Now ask yourself, which of these
Companies would YOU rather be?
Pricing doesn‟t matter when
Pricing does matter when:
You sell what
You sell only
You sell ONLY
Stay on the left. Price IS immaterial.
High Price, High Volume
Low Price, Low Volume
High Price, Low Volume
Zero Price, High Volume
Low Price, High Volume
High Price, Zero Volume
What’s with the guys on the left
who DON’T care about Price?!
• Patents, IP
• Perfection of product
• Brand recognition
(built over years)
What’s with the guys on the right
who only care about price?
• Me-too, competing on price
• Marketing via personal
• Very people-dependent
• Competing for small
• No guarantee of
sustainability or profits
Services Firms (ad
• FREEDOM from pricing comes from Innovation,
Perfection, Technology and Creating IP; NOT from clever
Costing, cut throat Competition or gushing Volumes.
• Service firms (e.g. Infosys, TCS, Wipro) have built
Pricing POWER by mimicking great product companies.
• Pricing is NOT about Cost + Profits.
It’s about Delight + Uniqueness.
How to Price?
Don’t think of cost &
margins. Instead think of
HOW you will be unique
in your offering
Constantly create IP. That
will make you develop
whether you price it or
PERFECTION no matter
how ordinary your sale.
Perfection is a long term
• The principles and guidelines spoken about in this
presentation are strictly my own ideas and MAY NOT be
feasible/practical for you.
• This document should serve as a guideline and
reference - not as a rule book!
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Connect with me!
e-mail - firstname.lastname@example.org
Twitter - @rodinhood
My social network for anyone