Luke Hohmann is a serial entrepreneur, author, and pricing expert. He recently wrote "Profit Streams," a book about effective software pricing strategies. With experience in multiple startups, successful exits, and even a significant failure, Luke brings valuable insights to the table.
Join Host Alex Shartsis in this episode as Luke shares crucial knowledge about software pricing strategies, challenging common misconceptions and highlighting the risks of underpricing in the tech sector. They discuss the benefits of bootstrapping, the importance of understanding customer value, and how to avoid common pricing errors as companies grow. Luke also provides practical advice for founders on quantifying value, institutionalizing customer feedback, and making smart hiring decisions.
Show Notes:
0:00 Introduction
1:04 Luke's background
2:58 The importance of pricing in software companies
11:15 Benefits of bootstrapping and equity retention
22:30 Case study: Underpricing in AI fraud detection
36:51 Common pricing errors as companies grow
49:10 Understanding reference pricing
59:28 The importance of discount analysis
1:17:06 Best practices for founders
Guest: Luke Hohman (linkedin.com/in/lukehohmann/)
Host: Alex Shartsis (linkedin.com/in/shartsis)
Audio Engineer & Video Editor - James Fixx (fixxmusic.com)
Music by the Great White Shark (Shark Shartsis)
The Seed to Sequoia podcast is created by Silverwood Advisors to help founders with practical advice on building successful startups.
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