One of the key responsibilities of product management, and paradoxically, one of the most perplexing, is Pricing. The act of setting a price at which to sell your product or service. Judging by the number of inches (feet) on my bookshelf I have dedicated to various tomes on the art and practice of pricing, it is clearly something I have thought about a lot, and as do many in the product management field, have struggled with.
At its core, the concept of pricing is straightforward. Identify a product or service that a constituency will buy (or likely buy). Determine its “value” to this constituency, and price it accordingly.
Let’s take a concrete example, Spotify1: