The “Road to Doing Business” started this Monday. The new phase of the Doing Business activity aims to help startups and improve their productivity in the online meetings that will take place next month.
The new phase of Doing Business, thought as a cycle of online conferences, started this morning, in a session dedicated to the theme “The strategy to set prices”. The guest, Tiago Ribeiro, is a professor and PhD in Economics.
Within the scope of the Doing Business activity, this new phase, entitled “Road to Doing Business” is running until Thursday and aims at supporting startups to do improve their game in the meeting taking place next month.
In this first conference, Tiago Ribeiro addressed the diversity of elements that have an impact on the definition of the price: market power, the types of price discrimination and the different ways of measuring demand.
“A common mistake when setting the price is looking at the “cost” indicator. However, the price is mainly because it is what others are waiting to pay for our product and this can only be assessed taking into account the value that each one is willing to give”, said Tiago Ribeiro.
The revenue then goes through setting the price “right from the start”, “without thinking about fixed costs or profit margins”. Combined with this perspective, “there is still a need to create Market Power, that is, the area where we are market leaders”, said the economics professor.
Regarding the different types of pricing, Tiago Ribeiro left several possibilities, considering startups. “There may be a price according to the service provided, although it is a rare format; there may be price discrimination for each group of consumers, a format used in mobile phone tariffs, in the different classes of airplanes …; or, lastly, create a group price, in a model similar to student discounts”, exemplified the guest.
In the relationship with the customer, it is important, according to Tiago Ribeiro, to take into account that the price definition focuses, above all, on a value proposal “in which the seller makes a value proposal and the buyer has the power of decision to buy or not ”.
In one of the pieces of advice left to the founders and responsible for startups that were present in the audience, the Economics specialist left a precious tip: “a suggestion that I make to startups, especially those that are Business-to-Business, is to start presenting an innovative product/service with a low price, in an initial phase, guaranteeing, subsequently, an improvement of it, as well as a gradual increase of the initial price and with the inclusion of parallel products in the business ”.
Startups can truly benefit from the innovation and agility that characterizes them. With innovative business models, products and services, startups can bring strong competitive advantages to the table. However, innovation also might bring the challenge of not having a deep knowledge of the market and the target audience.
Tomorrow, Road to Doing Business will have a new chapter, this time dedicated to the “Strategic sales process”. The session is open for registration and will be run by Angel Garrorena, VP Sales, specialized in Lean Sales, consultant and entrepreneur.
The 5th edition of Doing Business is held in partnership with UPTEC.