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
my friend just started working here. i've been thinking a lot about how subscription based pricing is unoptimal. curious to see how usage-based billing might work for sublime.
“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
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.
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
The most powerful and interesting media model will remain raising money from members who don’t just permit but insist that the product be given away for free.
Tim Carmody • Unlocking the commons
