Pricing Strategies for Product Managers

Pricing strategies are crucial for product managers to set the right price for their products. The right pricing strategy can help maximize profitability, attract and retain customers, and position the product effectively in the market.

Example

Netflix uses a value-based pricing strategy, where the price is based on the perceived value of the service to the customer rather than the cost of providing the service. This strategy has helped Netflix attract millions of subscribers worldwide by offering various pricing tiers suited to different user needs.