Every startup needs to choose a suitable business model. Startups need to focus on only one model to minimize confusion for companies and customers.
According to the CEO of Agate International, Shieny Aprilia, at least seven types of business models are currently developing in the startup world. They are software as a service, marketplace, usage-based, advertisement, transactional, enterprise, and e-commerce.
“Startups are strongly advised to focus on one model first,” said Shieny when presenting a business incubation session held by the SBM ITB, The Greater Hub, in Bandung (10/11).
In this session, Shieny also discussed effective pricing strategies by explaining the concept of “pricing first principle.” He underlined that the difference between cost, price, and value must be managed wisely. According to him, cost should be the smallest, while value should be the main focus.
“When the pricing strategy is ideal, customers will complain about expensive prices but remain loyal to our products or services,” explained Shieny.
Shieny also provides tips for handling price increases without driving customers away. To overcome situations where customers reject price increases, Shieny provides several practical tips, such as adding value to the product, solving bigger problems, or providing discounts under certain conditions.
“If our goal is to showcase the company logo, we can treat the discount as a marketing cost,” stated Sheiny. This approach ensures that customers remain engaged while allowing the company the flexibility to adjust prices as needed.
