the art of pricing
interesting pricing experiments, ideas, tools, and musings on how to get paid for your work/business/service/art/anything.
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the art of pricing
Priceless: The Myth of Fair Value (and How to Take Advantage of It)
William Poundstone • 3 highlights
amazon.com
We can have more than one subscription.
Boom.
One of the most hurtful conventions in subscription pricing is "it has to be simple".
Do you know how many tiers the fastest growing subscription mobile apps have (upper quartile in terms of growth)?
Not 1.
Not 3.
Steve Jobs used this pricing strategy to sell 40 million iPads:
Price Anchoring.
What it is & how to use it: 🧵
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.
“WE HAVE TO PAY”
But what if we get to?
Imagine looking at the exchange of money as an alternative way to say things like:
Thank you!
Please keep going.
My life is better with this in it.
A signal of gratitude carries more weight than a forced action
Alex Tan • #076 Consider This!
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.