How did you structure your pricing?
Relja Denic
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Neder Ghadhab@neder_ghadhab
Great question. It depends on the phase you're in. When we launched Zulla, we made decisions based on surveys conducted with early adopters, looked at our competitors' pricing, and identified our buyer persona to better understand the budget they had available. As we progressed, we made adjustments. One piece of advice on this: it's better to have fair pricing with the possibility of increasing the features offered than to start with high pricing and then reduce it. Nowadays, a little over a year since our initial launch, we are revising our pricing again to better adapt to the market and make our offering more appealing. In this second case, the numbers have dictated the rules. We analyzed key performance indicators, such as the number of leads, the number of trials, the conversion rate from leads to trials, from trials to subscribers, the churn rate, and some other metrics. If you don't have enough data in the initial phase, you're somewhat flying blind (though not entirely, since you can compare yourself with competitors and identify your target audience). In the later stages, it's the data that sets the rules.
We're about to test if our strategy works, so if you'd like, we can keep in touch and update each other on developments. :)
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What we did is we A/B tested a bit with customers when we were starting off. And we found the sweet spot to charge enough but at the same time provide a lot of value for the price we offer.
We looked at the competition at that time, and at the same time, we made a comparison of what we offered.
So yeah, in 2 months we found the sweet spot.
When I do this I mostly analyse the competition structure and the value they offer for this price so I got a clear idea of the perfect price that I should apply for my services. I also take in mind the total cost of providing my services. that is my price structure so far.
Our pricing structure is based on a combination of factors that we believe are essential for both our business sustainability and providing value to our customers. We've carefully considered market research, cost analysis, and customer feedback to arrive at our pricing model.
Firstly, we conducted thorough market research to understand our competitors' pricing and the industry standards. This helped us position ourselves competitively within the market while ensuring our prices remain appealing to potential customers.
We did exactly the same thing, usually looking at competitors and what they offer and us. That's how we found the best price.
When the service of your product is structural the price was defined by the rest of providers. If that is coyuntural the price is defined by your own costs of production and your margins.
Customer tests are only needed to determine if product can be launched.
Our pricing strategy is primarily value-based, meaning we price our products/services based on the perceived value they offer to our customers. To structure our pricing, we consider various factors, including production costs, competitor pricing, and extensive market research to understand what our target customers are willing to pay. We offer three pricing tiers to cater to different customer needs. This allows us to provide options for both budget-conscious customers and those looking for premium features. Over the past year, we adjusted our pricing to better align with market dynamics and customer expectations. This involved conducting customer surveys and analyzing competitor offerings.
Do the A/B Testing and check out the baseline
Start with a simple pricing structure. Two or three tiers is usually enough.
I'd say, mix a pinch of cost analysis, a dash of competitor stalking, and a heap of self-delusion about your product's grandeur. Voila, you've cooked up your price!
Launching soon!
I'm looking at starting with a totally free modal to get users in and provide value. Then introduce a paid tier/features once I get traction.
We are following the logic of giving first, receiving after.
Our app Boxio will be totally free, and for a long time I believe. We want to improve the app and solve computer workers' problems and call me naive, but I believe the money will follow. :')
If there is a problem and we are solving that, some people will be ready to pay for it.
When structuring our pricing for Liposuction Dubai, we considered several factors. Firstly, we conducted thorough market research to understand competitors' rates. Secondly, we considered our clinic's costs, including equipment, staff, and overhead. Finally, we aimed for transparency, offering different packages and payment plans to cater to various client needs. This approach ensures fairness and accessibility while maintaining the quality of our services in Liposuction Dubai.
Launching soon!
When we build products based on some API, we calculate the price based on what we pay for API, times 3 and if the amount is adequate for market - this is it.
Launching soon!
Anf not only API expenses. You calculate all your expenses but from the angle of unit economy and then you put a comfortable margin
Monthly subscription for really busy people - 3.997$ - 2.000$ OFF
One time payment - two weeks - 2.497$ - 500$ OFF
Also one time payment - one week - 1.497$ - full price
but it's fresh new service so... who know how it will work :)
i think the price is more than fair.
As a startup founder, I would set a relatively low price based on what I can afford. If customers are not interested, it means my product is not competitive. Of course, product pricing should take into account production costs, competitor prices, and market research, but this pricing method is often mediocre. We should stand in the customer’s shoes to make a practical assessment of how much value we have actually created for the customer and where their satisfaction lies. This is often troublesome, but it’s important as it helps us to better improve the product and enhance its intrinsic value. In fact, whether customers perceive the product price as high or low is vague. A high product price does not mean there are no consumers to pay for it. Completing an order is achieved by a series of beautiful transaction experiences. We should pay more attention to this. If your product is needed by customers, even if it’s free, that’s okay because there are many ways to monetize, but being needed is the most important.
I'm a free service provided by OpenAI without subscription plans.
10.5.20 RULE
Example: your product is priced at $10
Make sure that customers perceive the value as 10X that amount
then start raising prices by 5%
until 20% of customers start pushing back to reach perfect pricing point
💡 Do early AB test for pricing
1. pick a small prospective customer cohort (5-10)
2. Say you are doing featured based pricing or subscriptions
3. Basic X, premium Y & enterprise Z
4. then take 2nd customer cohort of same size and pitch 5X cohort 1 prices
5. could be a 3-5X differential
6. pitch both cohorts same features and measure feedback
7. If you close more customers at a higher differential, then it means that we have more freedom in pricing
8. It is very common for a startup to underprice that to over
9. If your higher priced customer cohort dont like the pricing then you can always offer them “an early adopter” pricing and stick to the cheaper pricing cohort
10.
💡 DO NOT PUBLISH PRICES ON WEBSITE OR PUBLICLY DURING PRICE DISCOVERY PHASE. PUBLISH ONLY AFTER PRICE DISCOVERY PHASE
Our pricing is structured based on factors such as the level of service required, the complexity of the task, and the amount of usage or resources utilized. We offer different pricing plans tailored to meet the needs of various users. Quick Draw These plans may include different levels of features, support, and usage limits. We strive to provide fair and competitive pricing while ensuring the sustainability and quality of our services.
