ClickZ : Developing a Pricing Strategy: Part 1
This is the first of two articles on
developing a pricing strategy for Internet
products and services.

There is a continuum that is used to develop a pricing
strategy. On one end is your cost to develop the product and
your profit targets (margins). Customer demand, competition,
and other market forces define the other end of the
continuum.

This first article focuses on margins, the measure of cost and
profitability of a product. It is the basis for determining the
financial success of your products and therefore your
responsibility as a product manager.