Picking Pricing

In this episode of REWORK, Kimberly Rhodes, Jason Fried, and David Heinemeier Hansson discuss various pricing models for products, drawing from their experiences at 37signals with Basecamp, HEY, and other ventures. They explore fixed prices, project-based pricing, monthly subscriptions, per-user pricing, and even unique models like one-time fees per employee. The conversation covers the importance of testing pricing strategies, understanding customer behavior, and the potential pitfalls of chasing "whale" clients, which can warp a company's focus and product development. They also highlight the significance of aligning pricing with a company's values and target audience, as demonstrated by Basecamp's dual-tier pricing and HEY's scarcity-driven model for email addresses. The discussion concludes with a look at the pricing strategy for their new product, Fizzy, emphasizing affordability and accessibility.