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The Rippling Price Strategy of AWS
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AWS
- Product: Cloud Computing
- New or existing: Innovated an existing product
- Disruption: Replaced upfront capital and long-term hosting commitments with metered, on-demand pricing by giving developers access to storage and computing bandwidth on-demand via API which made computing more accessible to startups and small businesses.
- Target Market: Developers, small businesses, startups
- Competitive Landscape: AWS had the $$$ infrastructure under Amazon to scale quickly, gain economies of scale which reduced their cost and then AWS passed those savings to customers via lower prices building a strong moat that warded off competition for many years.
How Share Everything Changed Everything
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In June 2012, Verizon introduced the Share Everything which changed the industry’s pricing framework and transformed how data was monetized. Read more
How Pricing Shapes Behavior on a Grander Scale
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Lately, I’ve been contemplating how prices influence my own individual experiences and shape collective behavior in sneakier ways. Prices obviously influence choices like clothing, decisions to own (or not) car and frequency of routine purchases like a morning cup of coffee en route to work and haircuts. Read more
Price as a default negotiation strategy is a dangerous game
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It’s tempting in the heat of a negotiation after you’ve made your first pitch and set the price but the party comes back and vaguely asks for more so now you have several dials to turn but one shines brighter than all the others. As the “room” gets hot with rising tension, you reach for the dial in the hopes of alleviating the pressure and hearing a resounding yes for reaching an agreement but to your surprise, the other party turns away leaving you hanging with your offer. Read more