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by jasonfried 4902 days ago
"Not a single mention of even covering your hard costs."

I didn't include that because that's fundamental. That's a given. If you don't know that you need to cover your costs to stay in business, then no advice is going to help you.

But also, remember... The market doesn't give a shit about your costs. So sometimes it's wise to start from the price and then build your business around that.

Because if you're price is too high because you're costs are too high, you're in trouble regardless of how you come up with a price.

2 comments

Right. So your updated advice is that you must cover your costs since it's fundamental; a given. But wait... nobody cares about costs, so skip that fundamental given thing, pick some arbitrary number, and build your business around said arbitrary number.

Had your blog post been "How we arrived at Breeze's price", I would have nothing to say as you would be describing your rationale for arbitrarily drawing a number out of a hat and charging that. However, your blog post is titled "How to price something" and from that viewpoint the advice is lacking.

Your magic is over. Did you read the thread? People found out. Well, first those security holes in RoR, now those useless blog posts, you already peaked. Did you consider selling? I'd buy your product line and brand for, say, 5,000 EUR (provided we split the due diligence costs). Deal?