I ask them, “If the product were free, how many would you…
““I ask them, “If the product were free, how many would you actually deploy or use?” The goal is to take pricing away as an issue and see whether the product itself gets customers excited. If it does, I follow up with: “OK, it’s not free. In fact, imagine I charged you $1 million. Would you buy it?” While this may sound like a facetious dialog, I use it all the time. Why? Because more than half the time customers will say something like, “Steve, you’re out of your mind. This product isn’t worth more than $250,000.” I’ve just gotten customers to tell me how much they are willing to pay. Wow.””
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
The speaker tests true customer demand by asking if they'd use a product for free and then at a high price, revealing willingness to pay.
In simple terms: Ask if customers would use a product for free and then at a high price to gauge real value.
Key Takeaway
Use bold pricing questions to uncover true willingness to pay.
Themes
pricing
customer validation
value perception
sales strategy
Mood
curious
analytical
strategic
Type
advice
business
sales
When to use this quote
- product launch
- investor pitch
- market research
- pricing strategy
Key Concepts
Willingness to pay
price anchoring
psychology of scarcity
Questions to Reflect On
- How would you verify a customer's claim of willingness to pay?
- What alternative methods can confirm true demand?
A Different Perspective
Customers may overstate enthusiasm when price is removed, leading to inflated expectations.