How to find the right pricing structure for your service?
Andy
7 replies
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Daniela Passos@danizeres
Hey Dev Bre! One tip - you need to do research with your target audience. If possible gather a group of them with a waitlist and send email campaigns redirecting them to two different landing pages and check which one has the highest potential of conversions.
Another possibility for research is to actually gather data through researches, use a typeform or google docs for it :)
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You need to understand the value that you bring to your customers, whilst, also taking into consideration of competitors pricing. Basically, what I am planning to do is to do a v1 which is better in some aspects than the market, price slightly below market and then by time try to increase my price. Hope that helps.
@tdajani @gilad_uziely Price increases can definitely be tough. One thing that can help is instead of doing an across the board price increase is to do price increases as new products or plans (internally in your billing system). From the customer's perspective, you'd still want the equivalent of 1 pro plan (as an example).
But internally you'd have Pro plan users that signed up before Date X and those that signed up after.
Assuming your product has improved over time, you could potentially even take that a step further and in an attempt to upgrade the users on the old (cheaper) plan, you could start to gate access to new features that were introduced after the price increase.
That latter part is a bit more tricky as you may annoying your longest tenured / most loyal customers, so you'll need to look at how much money you are leaving on the table and how new / different / more powerful the recent changes to your product are to justify the upgrade.
That's a very complicated topic. Here is a short video that might be useful as it talks about pricing as part of a wider set of questions you should ask yourself.
Hope it helps.
https://brianbalfour.com/four-fi...
From what I know, if you don"t have strong comparable, just go with a high price and diminish it until you find the best fit (i.e. the price your customers are willing to pay according to the value they perceive in your product).
As it has been said, increase a pricing is harder than decreasing it !
Look at your competitors, try something, switch it up, test and then test some more. I don't think there is a "correct" way to find your pricing structure, you just have to research as much as you can, make a quick assessment and go for the one that you think it will work. If that doesn't work, you will switch it up and so on, until you will find that sweet spot