Kevin Hale never disappoints with these presentations! Good stuff brother! Keep being excellent!
@VishalRaoOnYouTube2 жыл бұрын
Yeah, he's the best YC teacher IMO. That says a lot, because there are several really good teachers in YC.
@rajinderyadav92505 жыл бұрын
I love Kevin's talks! Pricing feels like voodoo. The fact that this works is amazing, excellent simple tips to follow.
@kwakuadade21594 жыл бұрын
Very insightful..Kevin's presentation is worth over millions of dollars to me.
@milinddeore71612 жыл бұрын
This presentation definitely has 10X value, being in Freemium model. Thanks Kevin!
@ramadhaniwasilWasil5 жыл бұрын
Price thermometer, optimize price table and 10/5/20 rule of thumb are valuable tips that can be applied immediately. Thanks Kevin, much value here!
@Mameghani5 жыл бұрын
This was by far the most helpful and valuable presentation I've seen! Thanks!!
@Linda___31i8Ай бұрын
Important information about refunds: what a joy
@blakemccorkle185 жыл бұрын
Started watching thinking, "God this is awesome stuff, why didn't I watch this earlier?!" only to realize it was posted today. Now I have to completely overhaul my pricing strategy but I'm not late to this video party, so I've got that going for me...
@GnarMarv24 жыл бұрын
All of Y's content is golden, truly grateful that they're sharing with the public
@JakeStevens174 жыл бұрын
Just the issue my startup was currently facing. These YC videos are a godsend
@Jonathan-qn5rn Жыл бұрын
Can you share your experiences and how it's going? Did you fail or succeed? If so why?
@edgy49255 жыл бұрын
Those are simple, yet *perfectly on-point slides* . Amazing value from all your presentations so far. To give you guys also little bit of experience from Edgy, esp. for Edtech startups here: At first I wanted to start off with online courses & curriculums at around $300. Only later I realized I could just throw a *2-month mentorship* into the room and see how the customers react. I chose $2,500 as starting price -which I thought they'd never pay. => *I had more signups for the mentorship than for the courses.* We went through the first row of mentorships, and the guys got amazing value. All of them have stopped losing money (which the majority of first time traders keep doing, we're talking about losses in the 5-6 figures in some cases here), and most of them are already making great gains in the short-term, but of course being consistently profitable comes with time. Conclusion: *Never underestimate the value guys.* If you turn the value around in our case, the avg. customers are saving 4-5 figures at least. This is the real value they're getting/saving.
@dunlopstar6 ай бұрын
I'm liking the 10/5/20 rule. Setting yourself up for 'relatively' easy 10x'ng of your product. Because if customers are coming in feeling that the value is 10x the price in the beginning, they'll see that value manifest as they use the product/service and ultimately will be accepting of the price eventually growing out toward that value point. Of course, that 20% 'acceptable loss' won't, but it plays into the strategy. I always worry about pricing, 'too high?' 'too low?'.... I mean I know the value and therefore the acceptable pricing of what I deliver, but in the beginning, you probably can't portray that value straight off the bat and you have to prove it. So this idea warms me to the fact that I may have to charge a tenth of what I think is right, to begin with.
@Vengefulization3 жыл бұрын
There should be a book with all the information given in these videos :D "The YC way" :D
@amortalbeing Жыл бұрын
Thank you very much. loved every second of it. God bless you all.
@tommypospa5 жыл бұрын
Incredibly efficient talk. So much great information, condensed and actionable. Thanks Kevin!
@lucentics4 жыл бұрын
kevin hale crazy 🔥 back at it again with another transformational talk
@siansroadtonirvana Жыл бұрын
Thank you for sharing Kevin ❤
@elizabethbryant78203 жыл бұрын
great pointers about the pricing with values
@hippocratech5 жыл бұрын
Taking advantage of how fresh the last 2 videos are - how would you guys approach customer acquisition where the community is the most important factor of the whole product/service and it really can't be a free one because of the cost (we will have 30 days of the trial period though)? How can a startup gain as many users as possible before actually launching the service (it will be completely useless without the people using it)? I love Y Combinator and the community around it!
@blakemccorkle185 жыл бұрын
Can you make a freemium model? Are there some aspects of the product/service that you could charge for? You say it can't be free because of the cost, what is the cost based on, bandwidth/hosting? If it's community based, then start locally; so if you were making an app like LetGo, make a "NYC LetGo" - you can spend extra time to make it more personal and perhaps get local businesses to sponsors/offer coupons, based, then pivot to wider areas as you gain traction. (without knowing more, I'm not sure what to say, my situation is different as my product requires my users to have high-end PC hardware/ VR rig setup, that 99.9% of my users currently do not have have, so I can't just send them a demo to gain traction. That's a problem I'll have to overcome) Good luck
@hippocratech5 жыл бұрын
@@blakemccorkle18 Thanks for the input! It's so awesome to see people actually engaging in the YC community, even on KZfaq! I really appreciate it!
@brentsloman50744 жыл бұрын
Wht do I do
@josephtimkovsky2012 жыл бұрын
Great talk. When you talk about customer value and 10X, are you talking about customer revenue or profit? For example, we help businesses sell more wine online. Shall we take 10% of the sales generated by our service or 10% of the profit generated by our service?
@777Kiq2 жыл бұрын
I believe he is talking about perceivable value by the client.
@josephtimkovsky2012 жыл бұрын
@@777Kiq yes, but is the value in revenue or profit?
@patriceken6 ай бұрын
04:19 value based pricing 06:56 first 2 stages, production development stage, introduction, you're not in the growth stage, early adopters, they don't look like mainstream customers that you find in the growth and maturity stages 07:49 what you are trying to do fundamentally, is requiring users to change their patterns
@margaretcezar11092 жыл бұрын
Thanks Kevin. That was very insightful. 🙏
@someshk025 жыл бұрын
Great talk with clear tips on pricing! Thank you!
@mikewhit2 жыл бұрын
Great info, loved the numbers approach and simple presentation
@davidking28464 жыл бұрын
Very insightful. I've watched this 4 times now, I'll watch it again soon :) Also... why is Kevin in Prison? He seems like a nice guy.
@GnarMarv24 жыл бұрын
LOL just caught on to that haha
@wdai034 жыл бұрын
He's just giving a course to the inmates on the prison startup economy
@FamilyCourtUnmasked3 жыл бұрын
Excellent presentation.
@Psychfan16616 ай бұрын
Can someone explain this to me. When he was showing that graph of what you should charge, were those revenues, monthly, or yearly, depending on the business? So, for example, what enterprise be $10,000 a month or $10,000 a year
@Jeffgenp10 ай бұрын
There is one thing I don't get in the "How to optimize prices" section (@10:35): Would it make more sense to optimize by profit instead of revenue? Could I have the best revenue by no profit at all in some cases? Please don't get me wrong. This is a highly valuable content you have provided here. I really appreciate it 👍🏻
@zelda556110 ай бұрын
Your right, Cause the $5 customers have 20 times more cost than the $15 customers. Thanks the Idea just popped up when I was reading your comment!!!!
@MatthewRiddett5 жыл бұрын
Incredibly useful. Thanks!
@Knowledge_Nuggies2 жыл бұрын
What are "logos"?
@V12theGod5 ай бұрын
I never understand how to measure perceived value. What in the hell does that actually mean if anything. Yes, I can Google the word but it still is this mysterious terminology that no one has yet to clearly define
@tamakikaitk956611 ай бұрын
Excellent!
@thomasdabin93692 жыл бұрын
Hi, Calculations at 9'51 appear wrong to me - the conversion rate is not taken into account is it? A - $5 * 40 = $200 B - $10 * 25 = $250 C - $15 * 20 = $300 D - $20 * 5 = $100 In this case, "C" is the preferred pricing strategy (higher revenue), however, when taking into accout conversion rate it gives the following : A - $5 * 40 * 20% = $40 B - $10 * 25 * 15% = $37.5 C - $15 * 20 * 10% = $30 D - $20 * 5 * 2% = $2 Taking into account the conversion rate, "A" appears to be the preferred pricing Would someone please explain to me the part I am missing on this one? Just to fully understand, many thanks!
@Jeffgenp10 ай бұрын
I'm not sure, but I guess that the Sales Volume is already the end result after Conversion Rate has been applied.
@sellermetrics3 жыл бұрын
When it is talking about price in the quadrant, is he talking about monthly subscription?
@glebgaiduk1394 жыл бұрын
It was Kevin's formula in the video -- 10*5*20. It means that if your values x10 to costs you can increase prices by 5% until you lose 20% of customers. What does it mean "until losing 20%"? Can smb help to puzzle out this definition?
@Andrew-es6yt3 жыл бұрын
Yes, 20% relatively what? Some random price you have tried for the first time?
@777Kiq2 жыл бұрын
1 year later, talking 20% of conversion fail.
@thomasshakelton2 жыл бұрын
The way I understood it is that your first calculate your price item from cost up or from the perceived value down. If you adjust your pricing because of the competition just make sure did you are aware of your underlying costs. Sometimes low prices can be perceived as low value but this is not always the case with consumer products more likely with B2B sales. Also I think his math was off because if I raise my price by 5% and lose 20% of customers, so 1 out of 5. Then if I charge 100 I will gain 20 (4x5) with those 4 customers but I will lose 100 with the one who left. That gives me a total loss of 80. I think he misspoke it is not 20% of your customers but 1/20 so 5%
@CharlesJBorland11 ай бұрын
I guess I'm stupid. How does Conversion Rate factor into the revenue figures in the 'How to optimize prices section' (P CR SV R)? Is he just saying "If 20% of users buy we'll have a sales volume of 40"? Meaning, for example, 200 people downloaded an app and, because of the 20% conversion rate, 40 people wound up purchasing something within in the app? So: $5 * 0.2 * 200 = $200
@dmitrydementiev35443 жыл бұрын
What should be the difference between cost and price for saas?
@Math_kru_earng Жыл бұрын
thank you
@FranciscoVillasanti4 жыл бұрын
Great talk! I'm wondering about the margin between cost and price when selling to consumers and enterprises. Which percentage should be good for an early stage startup with a SaaS product? We have a potential customer that is enterprise level (our first ) but we are struggling to find a suitable price that would yield a reasonable margin to sustain the business. Is it possible to get a 30% gross margin and still be able to invest in growth?
@lianater-grigoryan8873 жыл бұрын
This was helpful
@6toolbaseball4 жыл бұрын
Pure gold!
@SineadWalshMansfield5 жыл бұрын
Crystal clarification, thank you Kevin
@murtazakhanafridi17373 жыл бұрын
Thanks
@karelindima2 жыл бұрын
And do you think saas should have a free version? Or does it devalue the value?
@thisBrian5 жыл бұрын
Great video and excellent timing for an app I'm about to launch. Thanks!
@kqp1998gyy3 жыл бұрын
Thank you 🌷
@OmerVexler3 жыл бұрын
Great stuff
@MaiFast3 жыл бұрын
I wanna start a startup and have idea, but I am having issue is that idea can work only in 20 to 30 days per year, service startup, total users are some thousands to million ( as I searched and got data from Google ), I wanna create marketplace, should I do start or wait to learn more things first, I am student and next year going to graduate
@brittnayjohnson59823 жыл бұрын
#BUS25F42 This question makes so much sense.
@pgrech24 жыл бұрын
On the price vs complexity graph, are these numbers customer lifetime value, annual or monthly?
@desmond26404 жыл бұрын
That's what I was thinking...
@sergeychicherin3 жыл бұрын
It more looks like monthly numbers, but I am not 100% sure
@DrewCrawford_com5 жыл бұрын
very valuable info - thanks for sharing Kevin!
@nagnetto145 жыл бұрын
How can you determine the value of your product?
@FromFame4 жыл бұрын
You’re helping doreapp.co a lot
@deliverylastmiledevilride28873 жыл бұрын
chingoneria de plática
@reynardnehemia5 жыл бұрын
love it. Thanks for sharing
@prernaramanathan83064 жыл бұрын
When starting out, to get users on board can pricing be low ? otherwise how to do get usage and engagement going ?
@aragothkarsen50102 жыл бұрын
Seems quite reasonable but recently we were giving our product for free and its not pretty lots of business don't take for real and they ask what is the catch top often
@ignaciod.52873 жыл бұрын
what does "conversion" mean in this context?
@georgekariuki86145 жыл бұрын
Great stuff!👊
@stephanielockett75413 жыл бұрын
nice.
@giokakhiani5 жыл бұрын
I wish I could tag Kevin to ask this question. Can we apply 5% / 20% rule when we have 0 customers? We're kinda desperate for new clients right so can we afford losing 20% of the deals?
@F0XHALE5 жыл бұрын
After you get first customer, you play with increasing pricing.
@giokakhiani5 жыл бұрын
@@F0XHALE if we're set to increasing pricing why is it a bad idea to undercharge at first and go from there?
@F0XHALE5 жыл бұрын
giorgi kakhiani more money. Don’t leave money on table unnecessarily
@Anthonydcpc104 жыл бұрын
@@F0XHALE Hey Kevin. When you talk about inbound marketing (
@prakashreddy55493 жыл бұрын
10.5.20 #cheers
@mohamedfouad23045 жыл бұрын
thumbs up
@johnathanchen39435 жыл бұрын
This is great!
@khouse15545 жыл бұрын
Hi could you do pricing lesson for therapeutics and diagnostics?
@thomasshakelton2 жыл бұрын
10 / 5 / 20 seems strange because if I raise my price by 5% and lose 1 out of 5 customers. So if I charge 100 I will gain 20 (4x5) with those 4 customers but I will lose 100 with the one who left. That gives me a total loss of 80. Or is my math off?
@thomasshakelton2 жыл бұрын
I think he misspoke it is not 20% of your customers but 1/20 so 5%
@vinodharidas85145 жыл бұрын
Find it very useful.
@Daily_Peptalks3 жыл бұрын
#MGMT1328885 I get this! Useful, simple and easy to understand. Yay! 1006
@youpratter5 жыл бұрын
ON THE STRUGGLE BUS!!! Need a T-shirt saying this :D
@leonardoca63693 жыл бұрын
#MGMT1328885 I get this! Useful, simple and easy to understand. Yay! 1038
@ankk982 жыл бұрын
"Early adopters are not price sensitive" I think this is not true in many cases.
@ankk98 Жыл бұрын
Raisig pricing or keeping them higher may not be a good idea if your market penetration is less than 5 percent. It would make more sense to be more aggressive on getting more users.
@THEHADIDA Жыл бұрын
What about $10k-$25k sir
@AdeelKhan14 жыл бұрын
Is there a resource for things a founder should be doing that provide value vs things that do not? The resources that I can think of, off the top of my head: - "All that startups do, is basically these 7 things" - via Luke Iseman --> --kzfaq.info/get/bejne/l7ypnb2T0JzSiWw.html - What Steve Blank has to teach about this, I am guessing. Any other resource that anyone else would like to recommend? Many thanks in advance!
@lloydelpessoa96534 жыл бұрын
🔥
@japhetkineze45975 жыл бұрын
Interesting
@LeveragedFinance5 жыл бұрын
What are some non technical jobs at YC
5 жыл бұрын
Why am I looking this after 8 years on my business?
@sylviamontgomery-harmon82583 жыл бұрын
Mgmt 013 2885 knowing who your customers and pricing. Good marketing