Hi,
With the Epic vs Apple trial, we can’t avoid talking about pricing and the overheated debate that trial have generated. Here is some reactions from high profile VCs
Bill Gurley (Benchmark)
There is a big difference between what you can extract and what you should extract.
Also a follow up comment on twitter from Vinod Khosla (Khosla ventures)
As Jeff Bezos says “your margin is my opportunity”. I often advise entrepreneurs that too high a take rate is a tradeoff between short term and long term strategy. Optimize for growth, scale & competition not short term margin.
So How much should you charge ? of course there is no simple answer to that. There is a lot of variables coming into play: your market position, market maturity etc.. You will find below some articles and a very extensive guide about pricing from Hubspot to help build your own pricing “philosophy”
Our opinion is there is no definitive answer to the “how much we should charge” question, it should be a recurrent discussion and it should be regularly re-assess and adjusted based on your market dynamics, and customer satisfaction.
A great exemple on how pricing (free is that case) helps you crack a dominated market is what
Nordigen (an Id4 company) is doing on the open banking API sector. article below.
Apple have help created an entire new economy and they should be compensated for that , no debate but can they do better now with the scale they reached ? Yes no debate as well, one way to look forward is not only how much you charge but how much you redistribute from the benefits you are generating when you manage a buyer/seller ecosystem, for this reason ( and the exceptional talent of the founders of course) we have invested into
Fairmint which help companies to turn their equity into the most powerful tool to engage with their stakeholders (more below).
Enjoy your week.
The Id4 team.
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