Pricing Strategy
Description
with @jasonrosenthal @skominers @meigga @rhhackett
Welcome to web3 with a16z, I’m Robert Hackett and today, we discuss pricing strategy for startups — from traditional businesses to web2 to web3.
Topics we cover include:
- unit economics
- understanding consumer psychology
- using onchain data to inform pricing decisions
- Common mistakes and how to avoid them
- How to navigate a pricing pivot
- And lessons from real world pricing case studies, including Tesla, Nvidia, and others
Our experts include a16z crypto's Maggie Hsu, head of our go-to-market team; research partner and Harvard Business School professor of economics Scott Kominers; and head of our CSX startup accelerator Jason Rosenthal, who is a tech veteran having spent the last 25 years at various internet companies — the three combine all their different expertise around the theme of this episode.
Resources for references in this episode:
- When is decentralizing on a blockchain valuable? by Marco Reuter (a16z crypto, January 2023)
- The Value of Decentralization Using the Blockchain: An Economic Analysis by Marco Reuter (a16z crypto, January 2023)
- "The single most important decision in evaluating a business is pricing power..." — Warren Buffett (Bloomberg, February 2011)
- Network Effects, Moats, & the Business of Web3 (Episode 25) (web3 with a16z podcast, May 2023)
- 6 questions every founder should ask about pricing by Jason Rosenthal and Maggie Hsu (a16z crypto, May 2023)
- Zipcar: Refining the business model by Myra M. Hart, Michael J. Roberts and Julia Stevens (Harvard Business School Case Collection, May 2005)
- Ning CEO: Building a Better Website by Adam Lashinsky (Fortune, September 2010)
- On the best business advice Disney CEO Bob Iger ever received by Jeff Haden (Inc., December 2020)
- Predictably Irrational: The Hidden Forces that Shape Our Decisions by Dan Ariely (HarperCollins, February 2008)
- On the Bored Ape Kennel Club donating secondary sale proceeds to charity (Twitter, June 2021)
- Chief's Silicon Valley Stardom Quickly Clashed at J.C. Penney by Stephanie Clifford (New York Times, April 2013)
- Tesla turns up heat on rivals with global price cuts by (Reuters, January 2023)
As a reminder none of the following should be taken as tax, business, legal, or investment advice. See a16zcrypto.com/disclosures for more important information, including a link to a list of our investments.
United States
One day you’re selling like hotcakes, and the next, it feels like someone pulled the rug out from under your profits. So how do you stay ahead when supply and demand feel like an unpredictable dance? Enter Priceva, your dance partner that never misses a step. Their Competitor Price Tracking & Monitoring software keeps you in the loop with every pricing twist and turn. It’s like having a GPS for your business—you’ll know exactly where your competitors are headed. With automated price tracking, you don’t even need to lift a finger; Priceva’s got your back with real-time notifications. And if that’s not enough, their AI-based repricing tool is like having a market strategist in your pocket, constantly adjusting your moves to stay one step ahead. The cherry on top? A sleek interface where all your metrics live, so you can find market opportunities faster than your competitors can say “discount.” Sound too good to be true? Have a peek for yourself at https://priceva.com/. After all, in the