How to Price what you Sell?

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Yoda, how do
I price what
I sell?

How to Price what you Sell?
Alok Rodinhood Kejriwal
Founder – 2win group &
therodinhoods

Why?
Why this PPT?
I‟ve sold crazy s*** in the past 29 years. From
infant socks to oil drums to LC (letter of credit)
disc...

Wrong is the
Question you
Ask…

The wrong question!
After deep reflection, I have realized that the
Question itself is WRONG.
Yup. Pricing doesn‟t matter....

Exercise 1

Carefully study the next chart and THINK of
products and services (not related) that fit in
the (?) Boxes

Innovative

?

?
High $$$

Low $

?

?
Ordinary

Need a nudge?
If you didn‟t understand the chart, try this:
- The Top Right Box (green) represents something
that is High ...

Now think of products and services that fit
the chart.
Once done, go the next slide where I reveal
my choices.

Innovative

Post-it
Notes
(3M)

iPhone

Low $

High $$$

Nothing

Everything

Ordinary

Exercise 2

Volume vs. Price

High Volume

?

?

Low $

High $$$

?

?
Low Volume

High Volume

Lays
Chips

Rare or
Nothing

Low $

High $$$

Anything

RollsRoyce

Low Volume

Exercise 3

Losses, Profits & Volume

High Volume

?

?

Profits

Losses

?

?
Low Volume

High Volume

e-Com
Companies

Coke

Profits

Losses
Services
firms

Failed
Startups

Low Volume

Exercise 4

Impulsive vs. Informed Buys

High Volume

?

?

Informed

Impulsive

?

?
Low Volume

High Volume

Grocery

iTunes

Informed

Impulsive
Luxury
Goods

Airport
Shopping

Low Volume

Exercise 5

Volume vs. Competitors

High Volume

?

?

Low
competition

High
Competition

?

?
Low Volume

High Volume

Google
Search

Mobile
Apps

Low
competition

High
Competition
Pet
Shops

Bridal
Services

Low Volume

Relief!

No more charts 
(feel free to create your own exercises using
more parameters)

Question

What did you learn?

Analysis

Let‟s examine the charts once again,
grouped together:

Free to Unaffordable
with Zero/Little Competition
Free

Low Price

High Price

Unaffordable

Google

Post-it notes

iPhone...

Irrational to High Price
with Massive Competition
Irrational
(Free) Price

Low Price

Medium
Price

Flipkart

Grocery

Ser...

Now ask yourself, which of these
Companies would YOU rather be?

Conclusion 1:
Pricing doesn‟t matter  when

You sell
INNOVATION

You sell
PERFECTION

You sell
LEADERSHIP

Google or
Appl...

Conclusion 2:
Pricing does matter  when:

You sell what
OTHERS sell

You sell only
to COMPETE

You sell ONLY
for VOLUME

...

Meta Conclusion:
Stay on the left. Price IS immaterial.
High Price, High Volume
Bose

iPhone

Low

Competition
High

Brida...

What’s with the guys on the left
who DON’T care about Price?!

Google

Apple
Rolls-Royce
Cartier

• Unbeatable
technology
...

What’s with the guys on the right
who only care about price?
• Me-too, competing on price
• Marketing via personal
contact...

Conclusion:
• FREEDOM from pricing comes from Innovation,
Perfection, Technology and Creating IP; NOT from clever
Costing,...

How to Price?
Don’t think of cost &
margins. Instead think of
HOW you will be unique
in your offering
Constantly create IP...

Disclosures:
• The principles and guidelines spoken about in this
presentation are strictly my own ideas and MAY NOT be
fe...

Liked this presentation?
Go through some more!
• Basic Funding Concepts for Entrepreneurs
• How to write effective e-mail ...

Connect with me!
e-mail - alok@rodinhood.com
Facebook facebook.com/rodinhood
Twitter - @rodinhood
My social network for an...

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