Choosing a pricing model and price point for a virtual or augmented reality product

You own pricing for an immersive augmented or virtual reality offering. Explain how you would decide what to charge for it and how to structure that price. ```hint Price follows the goal Settle what the price has to achieve before naming any number: a price meant to win customers quickly and one meant to earn margin lead to different structures. ``` ### Clarifying Questions - Is the offering a headset, software or content that runs on existing headsets and phones, or a location-based experience such as a venue that sells sessions? - Is the main objective rapid adoption and market share, or margin from the start? - How does it compare with competing AR and VR offerings on features and on cost to produce: clearly better, comparable or behind? - Which buyers and which market come first: consumers, businesses, or both? ### What a Strong Answer Covers - A pricing objective tied to the business goal and to the type of offering, settled before any number. - Buyer segments and what each would realistically pay for an immersive experience. - A pricing structure (upfront price, subscription, tiers, pay-per-experience, bundles, financing) that matches how the offering delivers value over time. - A price level set between a cost floor, a competitor reference and a value ceiling, then validated with research or experiments. - Metrics and guardrails that say when to revisit the price. ### Follow-up Questions - A competitor cuts its price sharply soon after you set yours. Do you match it? - How would your structure change if businesses, such as training or design teams, turned out to be the main buyers instead of consumers? - How would you test a price before committing to it when this category has little sales history?