the art of pricing
interesting pricing experiments, ideas, tools, and musings on how to get paid for your work/business/service/art/anything.
sari and
the art of pricing
“Good pricing is not about the price. It’s about getting in each customer’s shoes and knowing exactly how they derive value from your product.” - Ian Clark
Caroline Clark • Page Not Found
Should you go trial or freemium? My takeaways from analyzing 50+ SaaS products:
1. You don't have to choose, you can do both! 90% of freemium products also offer a trial.
2. Go trial if your product needs hand-holding and has a high price-point.
3. Go freemium otherwise.
Pricing Manifesto
help.sunsama.com
on counterintuitive pricing and signaling in marketing
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 experimen... See more
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.
Madhavan Ramanujam • Monetizing Innovation
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.