Lots of theory on MVP (Minimum Viable Product) & the Lean Startup in the US of A. Interesting theories around pivoting - which is the process of a startup creating a prototype and then adapting based on market responses.
But much of them focusing on tech/web startups. Not so many on the normal offline-online kind of combination which prevails in our parts of the world.
In any event, the theorized versions of the MVP are quite intriguing. There are several key questions around this concept of MVP. But I am experiencing the below 2 as most critical:
1. Determining how much is the minimum from a product design perspective
2. Determining the pricing
Now, Q No.1 is well answered and the answer is kinda common whether tech or non-tech. It should largely be the intersection set of what the customer wants and how much you can deliver within your proposed outlay (whether self funded bootstrapped or investor funded) & available talent.
Q No. 2 though is radically different for tech. Esp the new age ones. Many of the iconic sites like FB, twitter & the less iconic ones like simple photo sharing ones etc have the liberty to launch "limited period free" products (being subscription businesses). Plus they have the ability to launch free & paid-premium services.
However, this is much more complex in a non e-business- the issues being:
1. Products are typically one shot consumption products. You gotta sell the product on Day 1
2. If you dont price at all , measuring test success is difficult
3. In case you price the product (& if there are certain product issues or you substantially change the product later), there may be customer issues
Solutions ?
1. Handling the initial customers very closely via email etc & promising to provide them any updates on the site in the next 12 months for free? (very tedious process-wise.............)
2. Maybe pricing at ZERO for say first 25 customers but gauging demand from web hits, requests from more customers, engagement of those who hav bought for zero etc
3. Charging a minimal cost & then combining it with No.2 above?
Interesting, nevertheless....
For a tech product depending on network ( FB, twitter etc where the value of goes up with every additional member) I would suggest going with minimum entry barrier. Hence no price charged is definitely my choice. If you at least establish a demand in the ideal scenario then you know that there is a chance of success. Otherwise you might continue to get confused about reasons of non acceptance - was it the price or was it the product?
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