In this episode of the How to Succeed in Product Management Podcast, marketing professor Jeff Shulman and The Product Management Center advisory board members Red Russak and Soumeya Benghanem welcome Divya Sreekumar (Amazon Web Services) and Harish Komaragiri (Facebook) to talk about product pricing strategies. A lot goes into determining the price of a product which includes the needs of the customer, product value, and willingness to pay of the target audience. The panel also tackles the different spectrum of responsibilities a PM has and how it can affect the overall business model. 
 
Support for How to Succeed in Product Management is brought to you by Apptentive, which enables product managers to measure shifts in customer emotion and gather actionable feedback across the mobile customer journey. To learn more, go to Apptentive.com/UW.
 
What to Listen For:
00:00 Intro
01:48 Why PMs need to learn product pricing
04:12 Product pricing strategies and modifying existing pricing
07:03 Strategizing around pricing is both exciting and delicate
10:20 PMs define customer value, corporate defines product value
11:43 The effort put into developing the product should reflect in its pricing
14:36 Getting a hold of the product value and where you’re going as a business
17:01 Figure out the problem being solved and who is it for
19:31 The product is marketed as a revenue enabler
27:11 Pitfalls for new PMs is an overly narrow perspective of growing a product
31:15 Spectrum of responsibilities a PM has
33:32 3 things that affect pricing: needs of customer, value, and willingness to pay
39:14 Advantages of using a cloud versus maintaining a hardware
42:13 Sustainable business follow a cost-based model
45:54 Business model is a bigger concept than just pricing
46:50 Pricing a new product for enterprise customers
50:58 Economic value estimation - what are the customers cost  and value drivers
52:11 Use real customers to product test
53:00 Customers are willing to pay for the most painful problem
58:29 Book recommendation from Soumeya
59:50 Train your brain to understand how the market works
01:02:11 Applying game theory in pricing 
01:05:09 Think about the economics you’re driving with your product decisions