How to Price your Minimum Viable Product
What is an MVP and how to Monetize it
What is an MVP?
A Minimum Viable Product (MVP) should have only the most basic features that are required to test a product hypothesis.
One must be able to test the basic hypothesis without any additional features. The product should have the least amount of features possible to test the most basic of the hypothesis.
When you start to monetize your product, you can choose whether you want to monetize through ads or paid features.
When one is starting a business, the cost of building and testing a product is very high. To make the product available to the market as soon as possible, you need to have a Minimum Viable Product.
The MVP helps one to identify the most efficient and effective product. It also helps to test the product with minimum investment.
How to determine the price of your MVP?
One of the most important things for a startup is to determine the price of the MVP as early as possible.
The price of the MVP should be determined before the MVP is launched. To make the product available to the market as soon as possible, you need to have a Minimum Viable Product. The MVP helps one to identify the most efficient and effective product. It also helps to test the product with minimum investment.
The MVP determines the price of the product. If your MVP has a price, you can make the product available to the market. You can also test how effective the product is. The product price should be determined based on the features that are present in the MVP.
How to price your MVP?
The price of the MVP should be decided based on the features that are present in the MVP. If you are planning to charge the customer for the product, then you need to add additional features to the MVP. You can then charge the customer for the additional features.
If you are planning to make the product free, then you need to remove the features from the MVP. You can then add the features later after the MVP has been tested.
One of the most important things for a startup is to determine the price of the MVP as early as possible. The price of the MVP should be determined before the MVP is launched.
You can decide the price of your MVP based on the following factors:
The target market;
Your competitors;
Your financial status and ability to recover costs and profits in a short period of time.
The aim of the MVP is to test the product hypothesis. If you have sufficient resources, then you can add more features to your MVP. You can then charge for these additional features.
If you do not have sufficient resources, then you need to remove some features from your MVP. You can then charge for these additional features later after testing them in the market.
You must be able to test the basic hypothesis without any additional features. The product should have the least amount of features possible to test the most basic of the hypothesis.
If you are not planning to charge for your MVP, then you need to consider your target market. If your target market is huge, then you can create a free MVP.
You can then add additional features and charge for them later after testing them in the market.
However, if your target market is small, then you need to create a paid MVP. You can then add additional features and charge for them later after testing them in the market.
If you are charging for your MVP, then you need to keep in mind that one should be able to recover their costs and profits within a short period of time.
The cost of creating an MVP depends on various factors such as industry, size of the team etc. When one is starting a business, they do not have enough money and resources available at their disposal.
Therefore they cannot afford to waste time on an idea that does not work out well in the end or is not successful in terms of sales or profit margins.
When one has invested heavily in creating an MVP, they need to recover their costs as soon as possible. You must be able to recover their costs and profits within a short period of time.
One of the most important things for a startup is to determine the price of the MVP as early as possible. The price of the MVP should be determined before the MVP is launched.
Conclusion
The price of your Minimum Viable Product should be decided based on the features that are present in the MVP. If you are planning to charge for your product, then you need to add additional features to the MVP. You can then charge for these additional features later after testing them in the market.
If you are planning to make your product free, then you need to remove some features from your MVP. You can then add these additional features later after testing them in the market.
About the Author
I am the Founder of Cudy Technologies (www.cudy.co), a full-stack EdTech startup helping teachers and students teach and learn better. I am also a mentor and angel investor in other Startups of my other interests (Proptech, Fintech, HRtech, Ride-hailing, C2C marketplaces and SaaS). You can also find me on Cudy for early-stage Startup Founder mentorship and advice.
You can connect with me on Linkedin (https://www.linkedin.com/in/alexanderlhk) and let me know that you are a reader of my Medium posts in your invitation message.
