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
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!!
Why it's worth running... See more
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.
Madhavan Ramanujam - How to Price Products onInvest Like the Best with Patrick O'Shaughnessy Colossus
podcasts.apple.com
This is one of the 🤯🤯🤯 experiments we ran on the Duolingo Retention team : https://t.co/Dv9Wp377vT
@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
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.
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.