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How Lesswrong helped me make $25K: A rational pricing strategy 2020-12-21T20:20:18.485Z

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Comment by kareemabukhadra on How Lesswrong helped me make $25K: A rational pricing strategy · 2020-12-29T18:04:32.300Z · LW · GW

Got it - makes sense. I set up contingencies where the client can terminate the contract (and vice versa) to solve against this.

Not a perfect solution though.

Really appreciate the thoughts here! It's helpful.

Comment by kareemabukhadra on How Lesswrong helped me make $25K: A rational pricing strategy · 2020-12-28T21:27:40.447Z · LW · GW

I'm proposing that if I find out that there are other products in the market that offer the same value for free, I might feel like it's an ethical issue. I don't have strong evidence that suggests that there are products which offer the same value for free (There's a lot of issues with recruiters e.g. incentive misalignment issues, they cater to specific people, etc.). Still learning though.

Comment by kareemabukhadra on How Lesswrong helped me make $25K: A rational pricing strategy · 2020-12-28T21:25:02.854Z · LW · GW

I'd a love a little more detail here. What makes you think I'm not providing help? 

Comment by kareemabukhadra on How Lesswrong helped me make $25K: A rational pricing strategy · 2020-12-25T18:23:05.106Z · LW · GW

I think there's a relevant question of ethics here.

If I learn that these competitors offer a product / service equal to mine or better, I'd feel obligated to change the business model or innovate my product / service in some way.

Still exploring that question.

Comment by kareemabukhadra on How Lesswrong helped me make $25K: A rational pricing strategy · 2020-12-24T01:22:20.387Z · LW · GW

Thanks bud!

Comment by kareemabukhadra on How Lesswrong helped me make $25K: A rational pricing strategy · 2020-12-23T18:24:09.223Z · LW · GW

RE Jacobian's point: This is fair, though it works on the assumption that the competitors offer an equally good service (i.e. they get the job seeker the highest paid, the most fulfilling job for them, etc.). This is open to debate because a) these competitors serve their network of businesses not job seekers so they're selecting from a smaller pool and/or b) incentives aren't as strongly aligned with the candidate. I'm still exploring the space though so I can't speak to what side of the argument is stronger.

RE digital_carver: What biz do you run?

Comment by kareemabukhadra on How Lesswrong helped me make $25K: A rational pricing strategy · 2020-12-23T18:19:06.015Z · LW · GW

Honestly, all 3. Generally, I think the best sales people do not sell. 

They simply explain pricing in a calm way and ask questions to make sure the other person is a good fit.

Also, can't speak to competitors, but my understanding of how many people price is they experiment with different numbers to see what customers are willing to pay (which I fundamentally disagree with as a pricing strategy).

Comment by kareemabukhadra on How Lesswrong helped me make $25K: A rational pricing strategy · 2020-12-23T18:16:50.905Z · LW · GW

Getting a new job takes a lot of time, so I don't usually take on clients in this position. It'd also be hard for me to justify spending time on a client like this given that unemployed people would gain more from my service.

Does that make sense?

Comment by kareemabukhadra on How Lesswrong helped me make $25K: A rational pricing strategy · 2020-12-22T02:37:42.284Z · LW · GW

Great thoughts. Yep. The people I'm working with rn struggled for 6 or more months. One of them had been at it for a year, so the maths makes sense (and may be generous) for the parties I'm working with.