Pricing For Startups – Sreelata Jonnalagedda

The Inspiration Sylvester Stallone Rumor Circulated On The Internet

One day Stallone was sitting at home watching a fight between Weppner and Ali. Weppner was getting absolutely slaughtered but kept holding his ground and coming back for more. This underdog was really fighting for it despite the slim chance he would even get close to winning.

This inspired Stallone to begin writing based on his inspiration from this fighter. He wrote for over 24 hours straight and after this time he had written the entire script to Rocky.

He began trying to sell the screenplay to many producers with enormous numbers of rejections. This went on for months.

He was so poor by this time that he decided he had to sell his best friend, his dog. Stallone waited outside of a local liquor store asking people if they would buy his dog. Eventually someone bought the dog for around $50. He was devastated to have to do this.

He kept pursuing this story that he had written. Eventually someone loved it and they agreed to do the movie. He was wrapped and told them that he wanted to play the part of Rocky.

They declined and told him he was a writer not an actor. Stallone disagreed and told them he was an actor. He declined their offer of over $100 000 despite his current poverty.

A couple of weeks later they contacted him with an even higher offer and Stallone still insisted that he play Rocky. They once again declined. Was he nuts? I mean the man was poor, he could barely even eat.

The offer kept rising just so he would sell them the film without playing the part. The price eventually got to around $400 000 and still he declined. He was certain that he was actor and that was it, there was no compromise.

Eventually they offered Stallone a measly $25000 so they weren’t throwing their money away by having him as the lead role. He accepted. Then the first thing he did was go back to the liquor store to buy back his dog.

As such there is no price discovery when you are pricing your startup product. Only Value Discover takes place.

Important questions to ask : –

Who is your customer ?

Who is the customer ?

What are his needs ? Goals ? Motives ? Constraints ?

The Value Discover Process

  • Customer Identification
  • Offer Design
  • Validation of Offer
  • Pivoting

WTP ? The wrong question

WTP – What’s the pricing. Do not ask consumers what price you are willing to pay. This is not the best price discovery method. Think apple ?

But in the end, for something this complicated, it’s really hard to design products by focus groups. A lot of times, people don’t know what they want until you show it to them. – Steve Jobs

You‘ve got to start with the customer experience and work backwards to the technology. – Steve Jobs

The First Customer Trap

  • Makes businesses eager to make a sale
  • Leads to Under-pricing.
  • No value discover.

Is there a free lunch ? No , never.

J P Narayan – Talk at IIM B

  • Why you need a large infrastructure to satisfy people’s need ?
  • Because government and other services don’t work.

An MLA spends ten lakhs a month with 150-200 henchmen during elections.

  • Political parties are there to maximize political outcomes.
  • Local Government empowerment.
  • Ideas to capture issues.
  • Electoral Reforms

Science is not a steady, cumulative acquisition of knowledge, but it is a series of peaceful interludes punctuated by intellectually violent revolutions. After such revolutions, one conceptual world view is replaced by another. – Thomas Kuhn

How To Interrupt

Do not always interrupt

Do not always get interrupted.

Do not allow bossy people to prevail.

Get rid of sorry in life. No use,

Same with Excuse me, get rid of it.

Be firm when you interrupt. Have a little command in your voice.

Live and Let Live – Tag of the Green Revolution.

Give opportunity to others who have not spoken in the last five minutes.

Thus irrespective of whether they speak or they don’t you get the opportunity to show leadership.

The in the end you conclude, summarize.

Protocol for Conclusion

Speak about the points that you do not support.

User however and then put across your point.

An inability to suppress a behaviour despite the negative consequences is common in addiction.

Resolves – 14/08/2012

@ Sunset Hill off Omkar, same spot as you met Tejas and Sandeep.

  • Renounce pleasure and it’s pursuit
  • Pursue Knowledge and Self Knowledge
  • Begin Tapasya at 6:30 pm
  • No regrets, forget past , make new beginning.
  • The conquest of self begins.
  • Washington D. C plan – ISDC- NSS Space Convention

7 Resolves

  • No Google News
  • No Computer Usage.
  • No Music.
  • No TV.
  • No overeating and binging.
  • No PMO
  • No buying books
  • No Games – Mobile App or PC
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

To Top