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Is 'Early Adopter' Pricing Effective?
As a small startup, we're about a month (or less, I hope!) away from launching our product. I've worked out a business model and run it by about 5 potential users. Each of them was confident that the 'price is right' however I'm not 100% sure.
I've seen a few companies (e.g. Recurly) do 'Early Adopter Pricing' where they offer a certain price to people who sign up early. That price will be grandfathered forever.
Has anyone here experimented with this? Is it better to just set a price then change and grandfather people? Or does the 'early adopter' discount drive sales?
- ecaradec 16y agoEvery company do early adopter pricing, sometimes they announce it as such, sometimes they don't. I don't know if telling it is better, but at the beginning you really need to have some feedback about your product, and your first customers may have to put up with initial troubles, so this is fair. My opinion is that if the paiement is a one time fee, it doesn't matter, but if this is recurrent you should tell people before, otherwise you'll get a revolution when you increase the price like zendesk ...
- crazyjimbo 16y agoI wouldn't worry too much about what Recurly did - they seemed to constantly change their mind on how their pricing would work. Now they've given up and are holding out until to July to announce new pricing. What I would take away from Recurly is that it can be hard to get it right first time, and changing your pricing once customers are signed up will upset some of them.