Question
With the terrible weather that has hit my area, an increasing number of people have expressed an interest in a grocery delivery service. There is currently no provider for such a service in my area. After doing a little bit of research online, I've found that a number of people have tried (and failed) at executing the idea, as there are a number of issues with such a service (such as scalability). I'm going to give it a try, but am confused on where to start with a pricing model.
Answer
In short, lean test. Try and test messages to market however you can to explore the range; or start high and offer discounts of varying amounts while driving traffic to your homepage to convert and test the pricing points. You can also use focus groups, but for pricing I've found they are often unreliable.
