Difference between revisions of "Distribution & Pricing hypothesis"

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Distribution & Pricing hypothesis
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=Goal=
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Develop a distribution channel strategy (how the product will get to the customer) & pricing model
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=Checklist=
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* How will your users initially buy from you?
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** From a salesman directly from the company?
 +
** From a representative or distributor?
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** Through a partner?
 +
** In a retail store? Mail order? On the web?
 +
** Pick a distribution channel
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* Draw the distribution channel diagram
 +
** How much will the channel cost (direct expenses or channel discounts)?
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** Are there any indirect sales channel cost (presales support, channel promotional dollars)?
 +
** What else is need for customers to use/buy the product? How do they acquire those pieces?
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** What is the net revenue after channel costs?
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* If there are products somewhat liek ours...
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** How much do customers spend for them?
 +
** How much do they pay to do the same thing today?
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* What is the economic basis for your pricing?
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** Comparable products that already exist?
 +
** The sum of the piece parts required to assemble the equivalent functionality?
 +
** A return on investment analysis of saved time, money & expense (in a [[New market|New market]])
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** Do you want to exchange the existing rules of pricing? Offer new pricing models?
 +
* How many copies / number of products can you sell at once?
 +
** Per household or company?
 +
** If the product was free, how many per household or per company?
 +
* How many can you sell?
 +
** If you charge \$1,-?
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** If you charge \$1 milion?
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** What is the price at which half of the customers say 'yes'?
 +
* If users had your product:
 +
** How much would they pay?
 +
** Pick a preliminairy price
 +
** Pick units for the first 2 years
 +
* Would it be easier to sell your product if it were
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** Sold in modules that individually cost less?
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** Configured as a complete solution?
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** Sold with other products?
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=Exit deliverables=
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* Tentative [[Pricing strategy|Pricing strategy]]
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* Tentative [[Distribution channel model|Distribution channel model]]
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* Tentative [[Deman creation activitities|Deman creation activitities]]
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Part of: [[Customer Development Checklist|Customer Development Checklist]] - [[Customer Discovery|Customer Discovery]]
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Part of book: [[The Four Steps to the Epiphany|The Four Steps to the Epiphany]]
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See also: [[Distribution channels|Distribution channels]]
 
[[Category:mbi]]
 
[[Category:mbi]]

Latest revision as of 19:55, 27 August 2020

Goal

Develop a distribution channel strategy (how the product will get to the customer) & pricing model

Checklist

  • How will your users initially buy from you?
    • From a salesman directly from the company?
    • From a representative or distributor?
    • Through a partner?
    • In a retail store? Mail order? On the web?
    • Pick a distribution channel
  • Draw the distribution channel diagram
    • How much will the channel cost (direct expenses or channel discounts)?
    • Are there any indirect sales channel cost (presales support, channel promotional dollars)?
    • What else is need for customers to use/buy the product? How do they acquire those pieces?
    • What is the net revenue after channel costs?
  • If there are products somewhat liek ours...
    • How much do customers spend for them?
    • How much do they pay to do the same thing today?
  • What is the economic basis for your pricing?
    • Comparable products that already exist?
    • The sum of the piece parts required to assemble the equivalent functionality?
    • A return on investment analysis of saved time, money & expense (in a New market)
    • Do you want to exchange the existing rules of pricing? Offer new pricing models?
  • How many copies / number of products can you sell at once?
    • Per household or company?
    • If the product was free, how many per household or per company?
  • How many can you sell?
    • If you charge \$1,-?
    • If you charge \$1 milion?
    • What is the price at which half of the customers say 'yes'?
  • If users had your product:
    • How much would they pay?
    • Pick a preliminairy price
    • Pick units for the first 2 years
  • Would it be easier to sell your product if it were
    • Sold in modules that individually cost less?
    • Configured as a complete solution?
    • Sold with other products?

Exit deliverables

Part of: Customer Development Checklist - Customer Discovery Part of book: The Four Steps to the Epiphany See also: Distribution channels