Fynn Glover of Schematic explains why founders treat pricing as an afterthought when it's actually the single most critical factor for product profitability. Price signals customer desire and sits at the heart of your business model. He shares a framework for structured willingness to pay conversations with prospects and customers.
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Hey, I'm Fynn Glover. I'm one of the co-founders of Schematic. Pricing and packaging is very unintuitive to most founders, as well as to most operators as their businesses scale. And yet a customer's willingness to pay is at the core of your business model. In his excellent book, Monetizing Innovation, which we highly recommend, Madhavan writes, price is more than just a dollar figure. It's an indication of what the customer wants and how much they want it. It's the single most critical factor in determining whether a product makes money, yet it's always an afterthought, a last-minute consideration that we've made after we developed a product. We've founded two venture-backed software companies. We've worked for other growth-stage companies like Automox, Relay Payments, Twilio, Microsoft, FullStory, Humble. In this blog, we're going to share a tool that we believe is crucial in the pursuit of product-market fit, but not just product-market fit, how to evolve pricing and packaging as your business scales, as it becomes more complex.