Question

How did Ben Casnocha decide on a price for his product?

Answer 1

We figured out how much the problem was costing the customer — and priced the product around that number.

Step-by-step explanation:

i was writing a paper and had this in my notes

Answer 2

Ben Casnocha is a young entrepreneur and venture capital investor who has written 2 books (The Alliance, and The Start-Up of You). You could say he hit the jackpot with his Comcate software that provides local governments with CRM solutions.

On his management book, The Alliance, he explains how he priced his software and it was fairly simple: he first calculated how much money his customer's could save with his software and then priced his product below that amount.

This logic is very simple and can be used by everyone, e.g. my customer has a problem that is costing them $10, and I can sell them a solution for $8.