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
SaaS billing for subscription & consumption models | Metronome
metronome.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.
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
maybe more interesting and differentiated (and fun!) subscription bundles can be created by combining two things you wouldn't typically associate with each other
pair a subscription someone really cares about and bundle it with one they only partially care about, so the latter feels like a... See more
Andy Weissmanx.comProduct 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.
“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
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docs.google.com
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.
