I’ve written up some basic notes on pricing which may be useful to businesses that provide web-based services that are sold by subscription or otherwise priced. I cover the basic economics of:

Price discrimination: Setting different prices to different groups of customers in various different ways.

Bundling: When should you bundle different services together or sell them separately?

Versioning: How to design different versions of your product depending on customer preferences.

Rent vs sell: Should you sell your service outright, or charge a rental?

These notes should be readable by people with little or no economics training.

Click here (pdf) to download a copy of the notes. I’d be happy to hear any feedback that you have, or any questions.