5 ms·

Have you thought about increasing your prices by a lot? I'm not the target market but $1 per month for the cheapest plan and $5 per month for the most expensive

Have you thought about increasing your prices by a lot? I'm not the target market but $1 per month for the cheapest plan and $5 per month for the most expensive one sounds insanely cheap to me.

skrebbel 7y ago
Seconded. Just make sure you increase them for new customers but not existing ones. You can even try A/B testing price levels and the likes!
- tgtweak 7y ago
  Price elasticity experiments are the lowest hanging fruits for optimizing revenue! We found doing it per country had a huge impact on rest-of-world LTVs.
  - vytautask 7y ago
    Please bear in mind that there is a regulation in EU that prices of the same product should not differ based on the country you are coming from (source: https://europa.eu/youreurope/citizens/consumers/unfair-treatment/unfair-pricing/index_en.htm https://europa.eu/youreurope/citizens/consumers/unfair-treat..., "Price discrimination is not allowed" section).
    - mritchie712 7y ago
      does this apply to companies not based in the EU? I don't see how they could possibly enforce this.
      - anoncake 7y ago
        Via the payment processor.
      - imhoguy 7y ago
        You can also have constant regular price and just give different discounts.
    - stagas 7y ago
      In Poland almost everything is 1/3 of the price compared to the rest of the EU for the same "stuff", arguably most have Polish branding but there are common products(Nestle, Coca Cola, etc) that are significantly cheaper.
      - anoncake 7y ago
        That's just different shops having different prices. The price discrimination that is banned would be like a shop near a border charging different prices to locals and border shoppers.
      - penagwin 7y ago
        Disclaim: I'm American and I'm mostly guessing here, I know that sometimes companies create multiple SKUs of products to get around certain restrictions. For example, if the Coca-Cola in Poland is only sold in Poland, and is different from what's sold in France (let's pretend your flag is on the can) - then they're technically "different products" and don't have to follow the same regulations. I know the WD easy stores sold at best buy are best buy specific so that they don't have to price match them with competitors, even though what the competitors sell have identical internals.
        cosmodisk 7y ago
        Oh yes,the famous brand products with less good stuff in them. Essentially,there are 3 unofficial markets in Europe: local market, western countries and the rest... Obviously the rest get it worse. European commission were investigating this couple of years ago,not sure where they are with it now. http://www.europarl.europa.eu/RegData/etudes/STUD/2018/608840/IPOL_STU(2018)608840_EN.pdf&ved=2ahUKEwium4_6_ZLnAhUsUBUIHUyHCUUQFjAAegQIARAB&usg=AOvVaw3S9Wa9o8n_onUTAn9qTmIN http://www.europarl.europa.eu/RegData/etudes/STUD/2018/60884...
      - imhoguy 7y ago
        What? Electronics, cars too?
        7y ago
    - OJFord 7y ago
      Which presumably affects and references only EU country pricing, so you need one 'EU price', which can be different from non-EU countries? I also wonder what the implementation has been (but not for much longer) without a single currency. I wasn't aware of this rule, and as a consumer have certainly seen variation in EUR/GBP rates (across different things that have the same EUR price say but not GBP). Must be challenging for big product sellers as opposed to service providers too, Amazon (shop) for example.
      - yorwba 7y ago
        The rule is against discriminating based on country of origin, not currency. While an EU citizen from a non-Euro country might prefer paying in their local currency, they should be able to choose to pay in Euros and get the same price as everyone else.
        OJFord 7y ago
        I don't understand, are you saying it only applies to Euros? I assumed (and understood from the link) that it applies to all EU member states, which presently includes the UK. Since the exchange rate fluctuates, there must be some margin of error allowed, otherwise it's almost impossible (and certainly more expensive) to implement with more than one currency.
        anoncake 7y ago
        As I understand them, if you accept Euros at all then you also have to accept them from customers in countries outside the Euro zone such as the UK. So if you try to discriminate against Brits by charging more in GBP than in EUR, they can bypass it by exchanging the money themselves.
- frits1993 7y ago
  Interesting, will definitely reconsider. Thanks!
frits1993 7y ago
I've definitely considered it, and I use some custom plans for users who exceed the limits of the Pro Plus plan, but I think current prices are alright. Also, keep in mind that these prices apply on yearly plans, and most paid users use monthly pricing, where prices range from $2 to $8.
- tallanvor 7y ago
  I like that you've decided that you're charging a fair price. While you certainly might make more money by raising the prices, you'll limit your market significantly. I know that I use a TV related site (one of the ones for tracking shows), and as much as I'd be happy to pay them $12/year, their cheapest plan is 3 times as much, and I just don't see them as providing that much value to me.
- natch 7y ago
  I like your current prices. When I consider subscribing to something (rarely) I have to weigh something like a $10 / month cost heavily because I can only have a few of those total. But if the service is significantly lower ($1, $2.50 in your case) it's a no brainer. $5 would be in the middle somewhere as definitely easier to accept than $10. It seems obvious that as a user I would like low prices, but at the risk of being slightly repetitive, what's apparently not obvious to many subscription service providers is that I consider the total price of all my subscriptions, not just the price of their one service.
  - seanwilson 7y ago
    > But if the service is significantly lower ($1, $2.50 in your case) it's a no brainer. I think this rational is okay for selling things like a coffee or a mobile game but not for a service. If you're thinking of pricing this low, you really have to start targeting users that value what you're selling more or expand the product to solve more valuable pain points. If you've got a niche product, you're unlikely to sell a big enough volume to earn a living selling it cheap as well. You'll lose the "no-brainer because it's so cheap" market by increasing prices but those customers aren't necessarily the customers you want.
tomaszs 7y ago
I actually like the pricing model. Because it is very cheap for the user and the creator can make a lots of money by scaling. I am a strong oponnent of high prices for SaaS for so many reasons. First, it discriminates citizens of poorer countries. Secondly, a lots of SaaS make this model that aims to heavy users only. Users who can spend a lots of more money as a single person. So there are great services, but a lots of occasional users just cant use it (and pay).

Have you thought about increasing your prices by a lot? I'm not the target market but $1 per month for the cheapest plan and $5 per month for the most expensive one sounds insanely cheap to me.

skrebbel 7y ago

Seconded. Just make sure you increase them for new customers but not existing ones. You can even try A/B testing price levels and the likes!

tgtweak 7y ago
Price elasticity experiments are the lowest hanging fruits for optimizing revenue! We found doing it per country had a huge impact on rest-of-world LTVs.
- vytautask 7y ago
  Please bear in mind that there is a regulation in EU that prices of the same product should not differ based on the country you are coming from (source: https://europa.eu/youreurope/citizens/consumers/unfair-treatment/unfair-pricing/index_en.htm https://europa.eu/youreurope/citizens/consumers/unfair-treat..., "Price discrimination is not allowed" section).
  - mritchie712 7y ago
    does this apply to companies not based in the EU? I don't see how they could possibly enforce this.
    - anoncake 7y ago
      Via the payment processor.
    - imhoguy 7y ago
      You can also have constant regular price and just give different discounts.
  - stagas 7y ago
    In Poland almost everything is 1/3 of the price compared to the rest of the EU for the same "stuff", arguably most have Polish branding but there are common products(Nestle, Coca Cola, etc) that are significantly cheaper.
    - anoncake 7y ago
      That's just different shops having different prices. The price discrimination that is banned would be like a shop near a border charging different prices to locals and border shoppers.
    - penagwin 7y ago
      Disclaim: I'm American and I'm mostly guessing here, I know that sometimes companies create multiple SKUs of products to get around certain restrictions. For example, if the Coca-Cola in Poland is only sold in Poland, and is different from what's sold in France (let's pretend your flag is on the can) - then they're technically "different products" and don't have to follow the same regulations. I know the WD easy stores sold at best buy are best buy specific so that they don't have to price match them with competitors, even though what the competitors sell have identical internals.
      - cosmodisk 7y ago
        Oh yes,the famous brand products with less good stuff in them. Essentially,there are 3 unofficial markets in Europe: local market, western countries and the rest... Obviously the rest get it worse. European commission were investigating this couple of years ago,not sure where they are with it now. http://www.europarl.europa.eu/RegData/etudes/STUD/2018/608840/IPOL_STU(2018)608840_EN.pdf&ved=2ahUKEwium4_6_ZLnAhUsUBUIHUyHCUUQFjAAegQIARAB&usg=AOvVaw3S9Wa9o8n_onUTAn9qTmIN http://www.europarl.europa.eu/RegData/etudes/STUD/2018/60884...
    - imhoguy 7y ago
      What? Electronics, cars too?
      - 7y ago
  - OJFord 7y ago
    Which presumably affects and references only EU country pricing, so you need one 'EU price', which can be different from non-EU countries? I also wonder what the implementation has been (but not for much longer) without a single currency. I wasn't aware of this rule, and as a consumer have certainly seen variation in EUR/GBP rates (across different things that have the same EUR price say but not GBP). Must be challenging for big product sellers as opposed to service providers too, Amazon (shop) for example.
    - yorwba 7y ago
      The rule is against discriminating based on country of origin, not currency. While an EU citizen from a non-Euro country might prefer paying in their local currency, they should be able to choose to pay in Euros and get the same price as everyone else.
      - OJFord 7y ago
        I don't understand, are you saying it only applies to Euros? I assumed (and understood from the link) that it applies to all EU member states, which presently includes the UK. Since the exchange rate fluctuates, there must be some margin of error allowed, otherwise it's almost impossible (and certainly more expensive) to implement with more than one currency.
        anoncake 7y ago
        As I understand them, if you accept Euros at all then you also have to accept them from customers in countries outside the Euro zone such as the UK. So if you try to discriminate against Brits by charging more in GBP than in EUR, they can bypass it by exchanging the money themselves.
frits1993 7y ago
Interesting, will definitely reconsider. Thanks!

frits1993 7y ago

I've definitely considered it, and I use some custom plans for users who exceed the limits of the Pro Plus plan, but I think current prices are alright. Also, keep in mind that these prices apply on yearly plans, and most paid users use monthly pricing, where prices range from $2 to $8.

tallanvor 7y ago
I like that you've decided that you're charging a fair price. While you certainly might make more money by raising the prices, you'll limit your market significantly. I know that I use a TV related site (one of the ones for tracking shows), and as much as I'd be happy to pay them $12/year, their cheapest plan is 3 times as much, and I just don't see them as providing that much value to me.
natch 7y ago
I like your current prices. When I consider subscribing to something (rarely) I have to weigh something like a $10 / month cost heavily because I can only have a few of those total. But if the service is significantly lower ($1, $2.50 in your case) it's a no brainer. $5 would be in the middle somewhere as definitely easier to accept than $10. It seems obvious that as a user I would like low prices, but at the risk of being slightly repetitive, what's apparently not obvious to many subscription service providers is that I consider the total price of all my subscriptions, not just the price of their one service.
- seanwilson 7y ago
  > But if the service is significantly lower ($1, $2.50 in your case) it's a no brainer. I think this rational is okay for selling things like a coffee or a mobile game but not for a service. If you're thinking of pricing this low, you really have to start targeting users that value what you're selling more or expand the product to solve more valuable pain points. If you've got a niche product, you're unlikely to sell a big enough volume to earn a living selling it cheap as well. You'll lose the "no-brainer because it's so cheap" market by increasing prices but those customers aren't necessarily the customers you want.

tomaszs 7y ago

I actually like the pricing model. Because it is very cheap for the user and the creator can make a lots of money by scaling. I am a strong oponnent of high prices for SaaS for so many reasons. First, it discriminates citizens of poorer countries. Secondly, a lots of SaaS make this model that aims to heavy users only. Users who can spend a lots of more money as a single person. So there are great services, but a lots of occasional users just cant use it (and pay).