Shiny New Product? Maybe you should sell high!

This Monday the Jumpstart Foundry teams had the opportunity to hear from mentor, Mark Harris. Mr. Harris started NextGxDx, a web-based genetic diagnostics platform allowing hospitals and physicians to identify and cross-reference genetic tests.

Mr. Harris discussed pricing strategies with the teams, covering several popular strategies used by large companies like Apple, Microsoft and Google.

The teams were particularly interested in the idea of Skimming, where a company relies on its devoted early adopters to pay a premium for the first wave of the product, and gradually reduces the price to appeal to a mass market. For example, Sony released the Playstation 3 at a staggering $599 in the fall of 2006, but despite the high price point, early adopters formed long lines outside of retailers to make their purchase.

Sony released a redesigned, improved version of the console in 2008 at half the price, and continues to see a high, consistent volume of sales.
Armed with fresh advice from Mr. Harris, the teams are now developing their own pricing strategies to maximize their product’s potential.

Do you have any tips or stories to share about pricing strategies?