Stanford Startup School presentation on pricing given by DHH (with typical DHH humor)
he brings up some interesting points - but this is hardly a class on pricing theory, but a good primer for those who haven't had performed pricing attempts on innovative and virtual products.
Brings to mind that you don't have to make HUGE ideas but Niche something decently well.
I think the key point that he glosses over is SUSTAINABLE CUSTOMERS. They go after the large accounts and fixes their problems. Landing the big fish for them is key, and it's quite difficult.
37Signals is a great company - they have a great product that solves some strong customer pains, obviously if you're writing a Facebook app that helps you turn vampires into zombies and zombies into vampires...you might not be able to pull this off.
Gives a good reminder too that you don't need to make a BILLION dollars in your company (if it's small like 37 Signals). This of course is in line with the RoR philosophy - small # of developers, frequent iteration, and lower rewards vs huge architectures and large numbers of coders, who then need the homeruns to pay the bills.
Totally agree with his take on the startup lifestyle - if you don't take outside money, you can call your own shots, you can have your own life. There's nothing wrong with a lifestyle business (small) but profitable.
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