Pricing Strategies For Online Products

Understanding CNG Price Build-Up Across India 🇮🇳 PNGRB has recently published the breakup of CNG retail prices across various Geographical Areas (GAs), based on disclosures from CGD entities. The breakup includes: - Gas cost - Supply & Distribution (S&D) cost - Entity margin - Taxes (Excise, VAT & others) - Retail Selling Price (RSP) CNG network penetration is uneven. Cities like Delhi, Mumbai, Ahmedabad have mature networks. Others—like Chennai, Mysuru, Visakhapatnam—are in early development. So, meaningful comparisons must consider maturity stage. I analysed GAs with similar number of CNG stations to allow a fair comparison. ▶️ Key findings - Refer to the PPT for the top 5 GAs by margin, grouped by the number of CNG stations - RSP ranges from ₹72.92/kg (Latur, MH) to ₹115.70/kg (Kullu, HP). ~135 GAs fall in ₹80–90/kg band - Gas cost ranges from ₹23.69/kg (Agartala) to ₹83.01/kg (Firozabad). ~140 GAs in ₹40–50/kg band - Despite pooled pricing, variations persist due to: Non-availability of domestic gas in some GAs, Demand outpacing allocation → higher RLNG usage - S&D cost is the biggest margin driver. High in: Southern/Eastern GAs (lack of pipeline connectivity), Challenging terrain GA's (HP, Rajasthan) & Early-stage GAs (low volume, fewer Online stations) - Among major cities: Bengaluru has lowest S&D cost → highest margin - Anomalies: East/West Godavari have high S&D costs despite early license and cheaper gas. Noida & Ghaziabad show negative margins, partly due to high taxes - Data gaps: Some GAs missing. Some entries show RSP = Gas cost, implying likely data errors. I also learnt that the Bangalore Data is incorrect and they have taken-up with PNGRB. Hope PNGRB puts up a next one rectifying these. For more such updates - ‎join my WhatsApp Group: https://lnkd.in/g3uicnkD Source: PNGRB CNG Price Disclosure (May 2025) #CNG #CityGasDistribution #EnergyMarkets #NaturalGas #PNGRB #CGD #GasPricing #InfrastructureIndia #EnergyTransition

The financial case for brand strategy: Why CFOs should care. Branding isn’t just about looking good.* It drives real financial impact (* if done strategically) Yet, many companies still see it as a cost rather than an asset that increases enterprise value, reduces waste, and boosts profitability. Here’s what most businesses get wrong: - They see branding as expense, not an investment. - They focus on short-term lead generation over long-term equity. - They underestimate how much a strong brand lowers acquisition costs, improves pricing, reduces churn and attracts talent. Here’s how: 01 - Brand Strategy Increases Market Value: Brands are intangible, but they drive real financial value. Today, 80–85% of the S&P 500’s market value comes from intangibles like brand equity. Corporate reputation alone is worth $16 trillion globally. Companies with strong brands deliver 2× higher shareholder returns over 20 years than the MSCI World Index. Why? A strong brand builds trust, reduces risk, and increases pricing, partnerships, and M&A leverage. 02 - A Strong Brand Lowers Marketing Costs: Weak brands must pay to be noticed, they have to keep buying attention…spending millions on ads and lead gen. Strong brands generate attention. Tesla, for example, spends $0 on traditional ads, while competitors spend $495 per vehicle sold. Tesla’s brand, combined with a touch of Elon, drives WOM, earned media, and loyalty...saving hundreds of millions in marketing costs. (And yes, I know it works both ways, for better or worse) 03 - Branding Improves Profit Margins & Pricing Power: A strong brand lets you charge premium prices and avoid price wars. Apple sells iPhones at 40%+ gross margins, while competitors struggle, even with similar hardware. Why? Customers aren’t just buying a product, they’re buying into a brand. Data shows: - Consumers pay 11% more for trusted brands. - Brand-loyal customers pay 38% more, even price-sensitive ones pay 14% more. - Without strong branding, companies must compete on price alone. 04 - Strong Brands Retain Customers Longer: Retention is one of the biggest profitability drivers. It costs 5× more to acquire a new customer than to retain one. A 5% increase in retention boosts profits by 25–95%. Brand loyalty reduces churn, increases lifetime value, and creates repeat buyers without ads spend. 05 - Resilient Brands Outperform in Crises: In downturns, weak brands suffer revenue losses and resort to discounting. Strong brands hold their value & recover faster. During 2020, while most businesses struggled, the top 100 most valuable brands grew by +5.9%. A well-built brand acts as financial insulation, stabilising revenue. The Hard Truth: A strong brand isn’t a luxury, it’s a financial strategy. If your CFO still sees branding as a cost center, send them this. Sources: McKinsey, Interbrand, BrandZ, Bain & Company, Nielsen, Kantar, Invesp, Unilever, Tesla, industry reports on brand valuation, CAC, and shareholder returns.

"Is $20/month too much for our product?" Instead of guessing, we used the Van Westendorp method to find our pricing sweet spot. 4 questions revealed exactly what users would pay (and we haven't touched our pricing since). Here's the framework any founder can steal: 1. Send a survey to actual users, not prospects We surveyed people already using Gamma. They understood the real value of our product, not hypothetical value. Too many founders survey their waitlist or randomly select people who have never used their product. That's like asking someone who's never driven about car prices. 2. Ask these 4 specific questions - At what price would this be too expensive for you to consider it? - At what price is it expensive but still delivering value? - At what price does it feel like a bargain? - At what price is it so cheap you'd question if it's reliable? These create bookends for perceived value. You're mapping the entire spectrum of price psychology, not just asking "what would you pay?" 3. Plot the responses and find where the lines intersect Graph responses from lots of users. Where "too expensive" and "too cheap" lines cross: that's your acceptable range. Where "expensive but fair" meets "bargain": this is your optimal price point. 4. Test within the range, don't just pick the middle The intersection gives you a range, not a number. We ran pricing experiments within that range to see actual conversion rates. A survey shows willingness to pay; testing reveals actual behavior. 5. Lean towards generous (especially for product-led growth) We chose to be more generous with AI usage than our "optimal" price suggested. Word-of-mouth growth matters more than maximizing initial revenue. Not everything shows up in the numbers. 6. Lock it in and stop tinkering Once you find the sweet spot through data, stick with it. We haven't changed pricing in 2 years. Every month debating pricing is a month not improving product. Remember: pricing is a signal, not just a number (Image: First Principles)

Something strange is happening in B2B buying. Deals are being won and lost before sales calls even happen. Not because of features. Not because of price. But because of something most B2B companies barely think about. Dentsu's massive 2024 B2B buyer study - over 14,000 interviews - reveals a shift that's rewriting the rules of how enterprise software gets purchased. And most companies are completely unprepared for it. The shift? Brand marketing now drives more revenue than most companies realize. And the ROI is measurable, predictable, and massive. B2B buyers only evaluate 2-5 vendors on average, according to TrustRadius's 2024 B2B Buying Disconnect Report. That's it. Once you make that shortlist, you have a 71% chance the buyer sticks with their initial favorite. The entire "evaluation process" often just validates a choice they've already made. But here's the ROI kicker: TrustRadius found 78% of buyers select products they've heard of before starting their research. Forrester's Business Trust survey found 77% of purchase influencers consider a vendor's brand awareness as a key factor in whether they trust that organization. The revenue impact? Forrester found 83% of B2B influencers who trust a supplier plan to continue doing business with them. That's not just win rate - that's lifetime value. The LinkedIn B2B Institute and Ipsos research confirms the pricing power: buyers explicitly state they'll pay premiums for trusted brands because it mitigates risk in complex B2B deals. Brand marketing doesn't just win deals. It wins them at higher prices with better retention. Brand marketing isn't a cost center - it's a revenue multiplier. When 78% of buyers choose from brands they already know, awareness directly equals pipeline. Yet only ~30% of B2B marketing budgets go to brand. We're investing backwards. Meanwhile, 68% of buyers say all vendors sound identical (Dentsu). And every $1 cut from brand investment costs $1.85 to rebuild (BCG). Smart companies track brand perception religiously. They know which buying situations trigger their brand. They measure if messages actually change perception. But 79% of CFOs see no clear metrics connecting brand to revenue. Because most companies guess instead of measure. You should do brand tracking at minimum once a year. You can run one with Wynter and gets results in 2 days https://lnkd.in/dV2umFPy

AI knows LOTS about you. And it's about to set the prices YOU, personally, pay... One of the early movers in AI pricing is Delta Airlines. They plan to expand AI-personalized pricing from 3% to 20% of tickets by year's end. Their president told investors: "We will have a price that's available on that flight, on that time, to you, the individual." Customer Reaction: "Wait, WHAT?" Translation: The algorithm has calculated how much you're likely to pay. Profit-wise, it's working. It's producing "amazingly favorable unit revenues." But what about the customers on the other side of these transactions? Seems like a zero-sum game. Delta's AI knows you. Your credit score. Purchase history. Loyalty status. That discount you almost clicked. How many times you checked the price. Whether you're on an iPhone or Android. Lots more. Here's the psychology they're missing: We're hardwired for fairness. Nobel winner Daniel Kahneman showed people will actually reject profitable deals if they feel unfair. They'll even pay extra to punish companies they perceive as predatory. When customers find out they paid more because AI analyzed their "willingness to pay," trust dies. This isn't yield management where everyone understands prices vary by timing and open capacity. This is weaponized information asymmetry that makes used car dealers look transparent. (More on that in my Forbes CMO Network article, linked in comments.) The irony? Short-term revenue gains could trigger long-term loyalty collapse. Customers who feel manipulated don't just leave. They tell everyone why they left. What's your take: Is AI-personalized pricing the future of commerce or a trust-destroying mistake? Is there a right way to do this? #CustomerPsychology #AIpricing #CustomerExperience #PricingStrategy

I recently went furniture shopping, and it turned into a lesson on pricing strategies I've known for years. Originally price- $3,500 Discounted price-$2,499 After two decades in retail and a lifetime as a consumer, you'd think I'd be immune to pricing tricks, but this one always gets me—until I take a closer look. This reminded me of Steve Jobs' famous iPad launch- He masterfully set the stage by hinting it would cost under $1000. We all braced ourselves for a $999 price tag. Then came the reveal at $499. Suddenly, $499 felt like a bargain. All because of this tactic called price anchoring. Here's the genius behind price anchoring: 📌 The power of context:  By setting a high reference point, brands make the actual price feel like a deal. Consumers are willing to pay up to 50% more for a product when anchored to a higher initial price. (Journal of Marketing Research) 📌Emotional decision-making: Our brains naturally compare, and the Anchoring Effect shows that the first price we see heavily influences our perception of value and willingness to pay. As consumers, we're not powerless. Understanding these tactics can help us make more informed decisions. Next time you feel you're getting an incredible deal, pause and ask: Is it truly a bargain, or have I been expertly anchored? What's your experience with price anchoring? Have you ever caught yourself falling for it? #pricing #strategy 

In early-stage consumer brands, pricing power is earned, not declared. Founders often assume that loyal customers will automatically absorb a price hike. They forget that loyalty is fragile when substitutes are easy. Brands that invest early in trust through product quality, authenticity and consistency earn the right to command premiums later. Pricing power is an output. It reflects years of brand building, not months of marketing. If you have to explain why you raised prices, you probably have not built enough value yet. #india #startups #strategy #pricing #finance

Ever noticed how a product's original price influences your perception of a discounted price? Or why you think a $50 shirt marked down from $100 is a better deal than a $40 shirt with no discount mentioned? This isn't just a random thought. It's a manifestation of a cognitive bias called the Anchoring Bias. The Anchoring Bias is our human tendency to rely heavily on the first piece of information (the "anchor") we encounter when making decisions. This initial information sets a mental benchmark, influencing subsequent judgments and perceptions. For instance, if you first see a pair of shoes priced at $200 and then find a similar pair for $150, you're more likely to perceive the latter as a bargain, even if it's still above your budget. The initial $200 price tag serves as an anchor, skewing your perception of what constitutes a good deal. 💡 How the Anchoring Bias Impacts Our Decisions: Perceived Value: When we see an item originally priced at $100 now selling for $50, we feel we're getting significant value, even if the item's intrinsic value hasn't changed. Negotiations: In business deals or salary negotiations, the first number thrown into the discussion often becomes the anchor, influencing subsequent counter-offers. Investments: Stock market investors might anchor to the initial price they paid for a stock, affecting their decisions to sell or buy more. 🚀 Tips for Marketers and Businesses: Initial High Offer: 💰 When launching a new product or service, consider introducing it at a higher price. Later, when you offer discounts or promotions, customers will perceive them as more valuable due to the initial high anchor. First Impressions Matter: 👌 In negotiations or pitches, start with a strong number or fact. It can set the tone for the rest of the discussion. Comparative Advertising: 🆚 Highlight your product's features and price against a more expensive competitor. This makes your product seem like a better deal, even if the price difference is minimal. Decoy Pricing: 🧩 Introduce a slightly more expensive option with fewer features than your main product. This makes your main product seem more valuable, even if it's only slightly cheaper. Contextual Anchoring: 🏆 Place premium products next to standard ones. The contrast in features and price can make the standard product seem more affordable and the premium one more luxurious. So, the next time you're evaluating a deal, making an investment, or setting prices, remember the power of the Anchoring Bias. Recognizing it can lead to more informed decisions and smarter strategies. –-- P.S. I'm covering the business aspect of the Anchoring Bias and how you can use it in marketing and business growth in this week’s edition of my newsletter Mindful Marketing 💌. You can join the newsletter for free here: https://lnkd.in/gTVS-nq9 #AnchoringBias #ConsumerPsychology #MarketingStrategy #BusinessInsights

The Salary Trap -- That Quietly Costs Candidates Thousands The scene we’ve all lived, wou crush the interview... Momentum is on your side. Then the recruiter asks, “So, what’s your target compensation?” A single number leaves your mouth. And just like that, every raise, bonus, and stock grant gets anchored to it. Why “naming your price” is a hidden disadvantage You can’t see the company’s full range. You may lowball yourself— Especially if you’re changing industries or relocating. You haven’t had a chance to frame your value with ROI stories. Translation: You negotiate against a ceiling you built. Flip the script 1 | Redirect the question “I’m flexible for the right role. Could you share the budgeted range for this position?” 2 | Probe for context “How is the range structured—base, bonus, equity?” 3 | Re-anchor with value “Given the impact I’ve had reducing onboarding time by 42 %, I expect the upper half of that range to be appropriate.” Let them reveal their cards first. They know their budget. They know their must-hire timeline. Make them match it to the results you deliver. Quick reminders • Salary transparency laws exist in many regions—let them comply. • Avoid disclosing past pay; it’s rarely a predictor of future impact. • Keep any range you give intentionally wide, tied to measurable results. Ready for a deeper dive? I recorded a free session: “3 Hiring-Manager Secrets to Land Your Next-Level Role.” Drop TRAINING below and I’ll DM the link. Prefer privacy? Send me a quick message.

Why is everything priced at ₹499 instead of ₹500? Ever wondered why malls, e-commerce sites, and even your favorite street vendors avoid rounded prices? It’s not random—it’s psychological trickery. And it works like magic. 🧠✨ This is called "Charm Pricing", a strategy rooted in behavioral economics. But what is the real reason behind it? Your brain reads from left to right. When you see ₹499, your mind registers it as "400-something" instead of ₹500. That single rupee shouldn’t matter, but it does—because it makes ₹499 feel significantly cheaper. But did you know the trick was originally used to prevent employee theft? In the early days of retail, stores priced products at $0.99 instead of $1 so cashiers were forced to open the cash register to give back change. This reduced the chances of them pocketing the bill without ringing up the sale. Fast forward to today, and this old-school trick still influences your buying decisions. 1) Studies show that prices ending in ‘9’ boost sales by 24% compared to rounded numbers. 2) Even premium brands like Apple, Amazon, and Flipkart use it—because it still works, even in the digital era. Next time you see ₹499, ask yourself—do you really need it? Or is your brain just falling for an old trick? Have you ever bought something just because it was ₹99 cheaper? Let’s discuss in the comments! #Psychology #Marketing #ConsumerBehavior #BrandStrategy #Pricing