When to charge?

Suggested time: 1-2hrs.

The thumb rule for when to charge is when Perceived Value > Perceived Price you should begin monetizing

Step 1: Identifying which aspect determines value for your product

Determine what aspects of your product provide the most significant benefits to users:

1. Functional goal (get some function/activity done)
2. Personal goal (live a better life)
3. Financial goal (make more money or save money)
4. Social goal (to look good in front of society, social acceptance factors)

Step 2: Competitor Benchmarking

• Assess your product benefits vs. that of your competitors
• If they match- what different can your product offer?
• Can you provide more value at a similar or lower offering?
• If not your product, which is the next best alternative in the landscape?

Step 3: Quantify your results ensuring they align with your price

• Basis the parameters of step 1, quantify how much time saved/money saved, etc. by speaking to users
• Only when value offered will align with price charged - your price will be accepted

Step 4: Map out the products’ perceived value of across the user’s journey

An example of how Tinder pop’s up its pricing plan after creating the highest perceived value for its user is mapped below.

This is not an exact measure since we can't measure value but this is how a user sees enough value for your product they become willing to pay in their journey!