For all those who are interesting in launching a product, this WSJ post might have some sound advice for you. As he puts it, Neil Blumenthal was at Wharton with his budies when they had the idea behind Warby Parker (you know, nice glasses for a fraction of the price), and as they started their company came upon their first roadblock :
Pricing is the hidden challenge of entrepreneurship.
To this day, he recalls the advice of his marketing professor saying that their product priced at $45 would not sell. What Bluhmental found is that pricing has three aspects :
- Price is ultimately what customers are willing to pay
- Price is the biggest indicator of quality
- Always watch your gross margins
The best conclusion comes from their funding : they raised $56 million in funding since May 2011 and are taking the market by storm.
