Your business idea is only as good as the number of customers that are willing to pay for it. Before you develop your product, you need to find potential customers and talk to them to verify that the solution you offer solves the problem they experience. In most cases, you will have to adapt (pivot) your product to their specific needs. Once you have found a perfect product-market fit, you should verify that this is still a product that you want to bring to the market.
Next, you must estimate the size of the market segment that you think is represented by the people you talked to. If that market is sufficiently large, and there are other potential market segments in the future, you can proceed to determine the price of your offering. Your pricing strategy should not be related to your cost price, but rather to the value it represents to the customer. The key lesson in this module is: make sure that your product matches customer expectations and price it accordingly.
So in short, module 3 deals with Customer Discovery and Customer Validation. After you found potential customers and pivoted your product to make a perfect fit with customer expectations, you need to price your product and identify your beachhead market. The module starts with a general introduction of the general theory, followed by lecture video . Next you will meet Ruben van Vreeland from Bitsensor, Simon van der Jagt from NowiEnergy, Joost Aanen from Eventix, Henk Arntz from Snocom, and Wim van Hoeve from Tide Microfluidics in the interview with entrepreneurs. They willexplain how they had to pivot their product and determine the correct pricing strategy. The General Theory then ends with some highly recommended readings.
Entrepreneurship for Engineers/ by TU Delft OpenCourseWare is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Based on a work at https://ocw.tudelft.nl/courses/entrepreneurship-for-engineers/.