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
maybe we are at a "failure of imagination" point for most, if not all, consumer subscription services in how they relate to their users (pricing, everything)
Andy Weissmanx.comon subscription fatigue and opportunity to think different
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.
After we found product market fit @Segment in Dec 2012, we nearly ran out of money because we were so scared to ask customers to pay. It took two gracious customers, a cocky sales advisor and a lot of fernet to learn the true value of our product. A 🧵 with 📸 1/18
Peter Reinhardttwitter.com
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!!
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