Madhavan Ramanujam: belief

Transcript context

…Well, those are different. I think what you're saying here is the retention may not work for some of these companies. But on the other hand, they're really cheap. 20 bucks a month to help your engineer be 10 times more productive potentially, is that too good a deal? Do you think they should have priced a lot higher? Yeah, for sure. I mean, if you're bringing a lot of value to the table and you started training your customers to expect $20 a month and you anchored yourself on a low price point, I think there are companies that have actually done that. And they try to undo it with having more sophisticated, let's say, products that are actually higher priced or much higher priced, et cetera. That's one way to undo that situation. So it's really a trade-off between getting more customers and making money at the same time. That's the whole point of the book, market share and wallet share, and how do you dominate both. So if they're being thoughtful about both and have a vision to not just grow market share, but also have a clear strategy to land and expand and increase wallet share, those strategies might pan out for those types of companies. If you just threw out a $20 product hoping to just accelerate your market share, you're in trouble. Okay. This is a great segue to this two-by-two, which goes much deeper into this. So it's easy to be like, "Here's what you shouldn't do." Here's your advice on what to actually do. So I'm going to pull up on my screen this two-by-two that you have in your book. So if you're watching YouTube, you'll be able to see it. So talk about this. This is essentially how to figure out the best possible pricing model and where you have the most power.…

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