Product Management
How do you figure out that first price for a product?
Determining an initial price often depends on the product itself, but emotional factors play a significant role in pricing strategy. Jason Fried explains that his company simply asks, "What's fair?" rather than conducting extensive research. There are pricing theories and "magic numbers" in marketing, but brands like Walmart use specific pricing patterns (like ending prices with .98 instead of .99) to signal value commitments to customers. The most important thing is putting some price on your product, even if it's too low initially. You can always raise prices later while grandfathering in early customers. Pricing decisions reflect your brand positioning and communicate value to customers - whether it's Amazon Prime choosing $79 instead of $99 because it "felt right," or Walmart's precise pricing to signal they're working hard to save customers money.
Watch clip answer (01:35m)
Tech co
01:12:38 - 01:14:14
How do you effectively improve user experience through feedback and iteration?
The process involves defining the problem first, then developing multiple potential solutions. As demonstrated by Sam and his team, they spent a week designing approximately 30 different versions of landing pages and messaging, continuously collecting user feedback and making iterative improvements. This approach allows for rapid iteration cycles without the harshness of real-world consequences. By consistently talking to users, observing their reactions, and refining concepts based on this feedback, you can identify what people truly value. When the final version is eventually launched into reality, it has a much better chance of success because it has already been tested and refined through multiple iterations. This user-centered design process helps create more valuable experiences that genuinely meet user needs.
Watch clip answer (00:02m)
Alex Hormozi
14:19 - 14:22