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
Steve Jobs used this pricing strategy to sell 40 million iPads:
Price Anchoring.
What it is & how to use it: 🧵
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
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.
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.
inspo from taylor.town
@elonmusk @Jason @profgalloway 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... See more
Patrick Campbelltwitter.com