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A Guide to Pricing Plans

capitalandgrowth.org

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Re: A Guide to Pricing Plans

#11

Post by thomk »

gk1 wrote: post #7

This is all about tricking people, and nothing about designing pricing to match the value provided. Pricing, especially for software products, is one of the biggest levers for increasing revenue through new and even current customers. It’s very important to get it right, and to experiment occasionally. (I know because I’ve done it for companies.) It involves a lot more than growth-hacking the pricing page.

Can you expand a bit? I'm genuinely curious about your experience helping customers price products.

Re: A Guide to Pricing Plans

#12

Post by lmeyerov »

This is pretty bad advice: the more imp thing is figuring out pricing plans that increases consumption and scale. These are games you play after you figure that out. 10% boost is cool, expontential and magnitudes growth is your real business.

Ex: can you get a tier for light users that converts when they're ready, goes up as they get addicted and happier, and then again as they go pro? Are the numbers aligned with their constraints/need/journey? Playing with color order matters way less and wastes your time from figuring this kind of stuff out.

In contrast, for this hack stuff, the a/b testing people have realized for most co's, a lot of work to maintain for only limited benefits, so only do when you make enough money to layer on the maintenance $ for the limited lift.

Re: A Guide to Pricing Plans

#13

Post by turkeywelder »

As a consumer I'm really not a fan of these techniques. I'm biased but our SaaS just has one price, no annual discount, no messing. It seems to be working out. I think people appreciate the straightforward approach when everything these days seems to have a pricing table.

Re: A Guide to Pricing Plans

#15

Post by gridlockd »

gk1 wrote: post #7

This is all about tricking people, and nothing about designing pricing to match the value provided. Pricing, especially for software products, is one of the biggest levers for increasing revenue through new and even current customers. It’s very important to get it right, and to experiment occasionally. (I know because I’ve done it for companies.) It involves a lot more than growth-hacking the pricing page.

Why would you design a price for "value provided"? That's highly subjective to the user. Users also generally only pay for what they expect to pay, not the value they're getting.

For instance, some utility might save hundreds of hours and thousands of dollars over the course of its usage, which is tremendous value. Yet if the average user expects that it should cost no more than, say, twenty dollars, that's what they'll be ready to pay.

This is why anchoring is beneficial, it gives you the opportunity to tilt that expectation a little bit.

Is that "tricking the user"? Arguably, but since you can't know the value users will actually get out of your product, any claims in that regard will fall under "marketing BS" as well. Pick your bullshit wisely.

Re: A Guide to Pricing Plans

#16

Post by jkuria »

joosters wrote: post #14

...Yet, this formula has never before been stated. That is, until now. ...page goes on to detail things that have been widely published and discussed all over the place.

The independent findings have been published but no one had put them into a cohesive whole "formula".

All the technologies Tesla uses existed but no one had created a Tesla :)

Re: A Guide to Pricing Plans

#18

Post by jkuria »

wackget wrote: post #9

That website looks (and reads) like one of those single-page secret ebook sales web pages from the 90s.

We are working on the look and feel but there is lots of great content.

What do you think of these mockups:

https://theconversionwizards-my.sharepoint.com/:i:/p/jasper/...

https://theconversionwizards-my.sharepoint.com/:i:/p/jasper/...

Re: A Guide to Pricing Plans

#19

Post by _ofdw »

FTA:

>And, unless you’re an old Grandpa, you probably don’t care about reading a paper copy.

Maybe I just have a strange peer group but I and most of my friends prefer hard copies. I pay for a paper subscription to The Economist, for example.

In my experience it's the boomers that are buying phone-based magazine or newspaper subscriptions. I can't think of a worse reading experience.

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