The art and science of pricing | Madhavan Ramanujam (Monetizing Innovation, Simon-Kucher)

In this episode of Lenny's Podcast, Lenny interviews Madhavan Ramanujam, a pricing strategy expert and author of "Monetizing Innovation," to discuss pricing strategies for product teams. Madhavan shares his extensive experience working with numerous tech companies, including unicorns, and emphasizes the importance of "willingness to pay" conversations early in product development to achieve product-market-pricing fit. The discussion covers various methods for determining willingness to pay, the significance of customer segmentation, different pricing models (skimming, penetration, maximization), and the critical distinction between features and benefits in product messaging. Madhavan also delves into behavioral pricing tactics and offers advice for founders navigating economic downturns, highlighting the need for proactive strategies and innovative pricing models.