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Pricing Turned Sideways - The Penny Gap

April 16, 2008

close up of a penny for pricingOne of the best articles/posts I have read in a long time about web marketing/sales is The Penny Gap by Josh Kopelman, Managing Director of First Round Capital. I am an old-school marketer relearning my craft in the social media, always on, web world.  In the old days of the 1980s, we learned a lot about pricing as part of the marketing mix and especially the concept of price elasticity (volume goes up as price goes down - to a point of diminishing returns).  The web has turned these economics on their head (or at least their side), and Josh does a great job of looking at this from the VC point of view.  It's worth the read...   Think about how this applies to you in a business-to-business marketing world - especially if you market to small businesses.


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