Pricing Strategy

with @jasonrosenthal @skominers @meigga @rhhackett

Welcome to web3 with a16z, I’m Robert Hackett and today, we discuss pricing strategy for startups — from traditional businesses to web2 to web3.

Topics we cover include:

unit economicsunderstanding consumer psychologyusing onchain data to inform pricing decisionsCommon mistakes and how to avoid themHow to navigate a pricing pivotAnd lessons from real world pricing case studies, including Tesla, Nvidia, and others Our experts include a16z crypto's Maggie Hsu, head of our go-to-market team; research partner and Harvard Business School professor of economics Scott Kominers; and head of our CSX startup accelerator Jason Rosenthal, who is a tech veteran having spent the last 25 years at various internet companies — the three combine all their different expertise around the theme of this episode.

Resources for references in this episode:

When is decentralizing on a blockchain valuable? • by Marco Reuter (a16z crypto, January 2023) The Value of Decentralization Using the Blockchain: An Economic Analysis • by Marco Reuter (a16z crypto, January 2023) • " The single most important decision in evaluating a business is pricing power • ..." — Warren Buffett (Bloomberg, February 2011) Network Effects, Moats, & the Business of Web3 (Episode 25) • (web3 with a16z podcast, May 2023) 6 questions every founder should ask about pricing • by Jason Rosenthal and Maggie Hsu (a16z crypto, May 2023) Zipcar: Refining the business model • by Myra M. Hart, Michael J. Roberts and Julia Stevens (Harvard Business School Case Collection, May 2005) Ning CEO: Building a Better Website • by Adam Lashinsky ( Fortune • , September 2010) On the best business advice Disney CEO Bob Iger ever received • by Jeff Haden ( Inc. • , December 2020) Predictably Irrational: The Hidden Forces that Shape Our Decisions • by Dan Ariely (HarperCollins, February 2008) On the Bored Ape Kennel Club donating secondary sale proceeds to charity • (Twitter, June 2021) Chief's Silicon Valley Stardom Quickly Clashed at J.C. Penney • by Stephanie Clifford ( New York Times • , April 2013) Tesla turns up heat on rivals with global price cuts • by (Reuters, January 2023)

As a reminder none of the following should be taken as tax, business, legal, or investment advice. See a16zcrypto.com/disclosures for more important information, including a link to a list of our investments.

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