How do you set prices?
Dominik Ilnicki
8 replies
I'm curious how do you set prices for your products. I plan to launch my very first thing soon, my costs are very small and I don't know what number per month would be good. How should I think about it? What consider?
What's your take on that?
Replies
Mohammed Imthathullah@imthath_m
Think of the value your product adds to the user's life. Then evaluate what type of users will be willing to pay for such a product. Then think about the amount they will be willing to pay.
When you are not sure of the price, see how much your competition is charging. If you think your product is good, price it higher than the competition and let people know why your product is better.
I recently read this case study (https://marketingexamples.com/pr...), which says you can price your product higher or lower only based on what your offer.
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check Coda.Io pricing, its can help you a little
A mix between the value of your product and competitors pricing. However, if your product is better I think you should have atleast the same price at the beginning.
I think pricing decisions should be based on a combination of different things in my opinion:
1. Your product/business cost (server, team, premises)
2. The value you can add to customers
3. Your competitor's pricing
4. Stage of production on your roadmap (is it polished or still in need of lots of features?)
Try to understand where your tool can save time/money for the customer.
If a tool is going to cost me $100 per month, but I can clearly see how it is going to save me 40 hours per month or reduce my costs by $10,000, I can justify the price.
It all depends I suppose on your product and the value it brings to the customer.
There is already a lot of good information in the other comments.
I would just add the notion of "perceived value" here.
If you are lucky enough to have contact with trial users, ask them directly, you will be surprised. 😊
Patrick Campbell is an expert in pricing strategy for SaaS. This video should be helpful:
