the art of pricing

Wow. @SubstackInc experimented with pricing, reducing it by 1 cent, so e.g. instead of $10/month, do $9.99/month. The result? A significant decrease for the pricing ending with .99. Which goes against conventional pricing wisdom!! Why it's worth running... See more

Product framing often takes advantage of the brain’s tendencies to take shortcuts when estimating value Example: A steakhouse offers three steaks of escalating value. The brain will often assume the bottom one is too cheap and the top one is too expensive, ultimately taking the shortcut to the middle option.

This is one of the 🤯🤯🤯 experiments we ran on the Duolingo Retention team : https://t.co/Dv9Wp377vT

👀 Wow, found a gem on Reddit. SaaS owners, think about this pricing trick! https://t.co/2bg29R5Oe1

If your customers perceive your discount as signaling a lack of confidence in your product's value, they may not want to buy it at any price.