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Estd 4.22.2023
Based on the guidance in our pricing strategy book, Price to Scale, there isn’t a one-size-fits-all answer. Instead, you should view pricing experimentation as an ongoing, iterative process. Here are some key points from the book to consider:
• Continuous Testing: As explained in Price to Scale, quantitative and qualitative research helps generate hypotheses, but the real validation comes from testing different pricing scenarios. Each time your market or customer base presents new reactions or shifts in behavior, it’s a good opportunity to experiment with your pricing strategy.
• Market Segment Consideration: The frequency of experimentation can vary by market. For consumer settings or small business software, the book notes that you can often gather a significant sample size—a sign that more frequent experiments are feasible. On the other hand, with enterprise or B2B segments, where buyer dynamics are more complex, experimentation might occur less frequently and require more controlled approaches.
• Iterative Adjustments: The book emphasizes the value of iterating based on market feedback. When you deploy straw-man concepts or pilot several scenarios, use the feedback loop to refine and adjust. In practice, every time you roll out a new pricing idea or when there’s a significant market change, it’s worth testing again to fine-tune your strategy.
In summary, while there isn’t a fixed schedule for how often you should experiment with pricing, the key is to build a process where you regularly test and refine your strategy based on ongoing market and customer insights. This continuous, iterative approach is central to finding—and maintaining—the optimal pricing strategy as advised in Price to Scale.