pricing for a product SKU is pretty straightforward. Your production expenses and desired profit margins determine your price. In the product world, this is known as “cost plus” pricing. Let’s say you build a fidget spinner. You know your manufacturing and sales costs, so you set a profit margin on that fidget spinner. If you sell millions of fidget spinners, you get to discount them in order to undercut your closest fidget spinner competitor and make up the difference in volume. A fidget spinner monopoly is born. Subscription pricing is trickier. Of course you have costs that you need to
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