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Thanks! The problem with being 10x or 100x the current rate is that we can't actually justify that cost for the value we provide. When we set the price point,

by ebzlo 14y ago

Thanks! The problem with being 10x or 100x the current rate is that we can't actually justify that cost for the value we provide. When we set the price point, we basically asked ourselves how much we'd actually pay for the same thing.

sgdesign 14y ago
Instead of asking yourselves "what's the minimum amount someone would pay?", you should be asking "what's the maximum?". I'm really cheap, and even I find $3/month ridiculous. It should at least be $9/month, and you should find a way to have multiple plans (say, $9, $29, $59).
- mikhaill 14y ago
  I'll second @therealarmen point and agree with @sgdesign. You priced the product based on real value and not perceived value, which represents how much customers feel a product is worth and is willing to pay for it. If I have a web app, I sit and suffer as I look at my low conversion rate, low engagement and high amount of tickets coming to the support desk with annoyingly simple questions. All these items take up my time and effort, which cost money. If your product means five less support e-mails, three more users that do not cancel because they understand how to use my app and ten more conversions a month, that right there is worth much more than $3 a month and I'd would be willing to pay for it.
  - ebzlo 14y ago
    Okay, you all have convinced me. Back to the drawing board on that.
itships 14y ago
Are you saying that you don't think your product provides $30/month value compared to tooltip scripts like on Code Canyon, or compared to not having a web app tour at all? - I think most web apps with users or revenue would get $xxx+ of value from a tour. - I've thought about creating a tour for some of my sites, but I've always been too intimidated by the idea of mucking around with scripts that I don't understand. A WYSIWYG tooltip product might as well be the only tooltip product from my point of view. I agree that you should be charging 10x-100x more.
runako 14y ago
What others have said, plus: I don't trust you to stay in business at $3/mo. You may deliver an awesome product, but I simply don't believe the economics will work at all for $3/month. At best, you'll cut corners and your service will start to suck. This makes me much less likely to put you in the critical path of my business. So charge more and make everybody happy! Suggestion: segment on the complexity of the product tour? Maybe by the # of steps included? Or (better) allow me to add audio/video to my tours and charge me more for that.
- ebzlo 14y ago
  Great suggestions! # of steps included is something we haven't thought to implement, will do!
dantiberian 14y ago
In this video https://training.kalzumeus.com https://training.kalzumeus.com patio11 describes how building product tour's can increase sales by 20-100%. Taurus.io is definitely worth more than $3/month and could be priced far higher.
- ebzlo 14y ago
  This is great (and flattering). We're definitely going back to the drawing board in regards to how we price this thing.
dchuk 14y ago
I don't mean this in an insulting way, but you're wrong here. You don't think a product tour that potentially hundreds if not thousands of people use and can significantly increase your customers' ROI is worth more than a Big Mac a month? Come on now, don't fall into the trendy startup blackhole of improper pricing. Charge.For.This. Make a lot of money. Build in analytics. Prove your value.
- ebzlo 14y ago
  No offense taken. Everybody here is completely right. We're going to change our pricing as soon as we step out of our closed beta.
hopeless 14y ago
You are not your customers! If is irrelevant what you would pay or how much value you would get from the service. If a good tour helps to retain just one subscription customer a month, that easily justifies x10 the $3 price.

by ebzlo 14y ago

sgdesign 14y ago

Instead of asking yourselves "what's the minimum amount someone would pay?", you should be asking "what's the maximum?". I'm really cheap, and even I find $3/month ridiculous. It should at least be $9/month, and you should find a way to have multiple plans (say, $9, $29, $59).

mikhaill 14y ago
I'll second @therealarmen point and agree with @sgdesign. You priced the product based on real value and not perceived value, which represents how much customers feel a product is worth and is willing to pay for it. If I have a web app, I sit and suffer as I look at my low conversion rate, low engagement and high amount of tickets coming to the support desk with annoyingly simple questions. All these items take up my time and effort, which cost money. If your product means five less support e-mails, three more users that do not cancel because they understand how to use my app and ten more conversions a month, that right there is worth much more than $3 a month and I'd would be willing to pay for it.
- ebzlo 14y ago
  Okay, you all have convinced me. Back to the drawing board on that.

itships 14y ago

Are you saying that you don't think your product provides $30/month value compared to tooltip scripts like on Code Canyon, or compared to not having a web app tour at all? - I think most web apps with users or revenue would get $xxx+ of value from a tour. - I've thought about creating a tour for some of my sites, but I've always been too intimidated by the idea of mucking around with scripts that I don't understand. A WYSIWYG tooltip product might as well be the only tooltip product from my point of view. I agree that you should be charging 10x-100x more.

runako 14y ago

What others have said, plus: I don't trust you to stay in business at $3/mo. You may deliver an awesome product, but I simply don't believe the economics will work at all for $3/month. At best, you'll cut corners and your service will start to suck. This makes me much less likely to put you in the critical path of my business. So charge more and make everybody happy! Suggestion: segment on the complexity of the product tour? Maybe by the # of steps included? Or (better) allow me to add audio/video to my tours and charge me more for that.

ebzlo 14y ago
Great suggestions! # of steps included is something we haven't thought to implement, will do!

dantiberian 14y ago

In this video https://training.kalzumeus.com https://training.kalzumeus.com patio11 describes how building product tour's can increase sales by 20-100%. Taurus.io is definitely worth more than $3/month and could be priced far higher.

ebzlo 14y ago
This is great (and flattering). We're definitely going back to the drawing board in regards to how we price this thing.

dchuk 14y ago

I don't mean this in an insulting way, but you're wrong here. You don't think a product tour that potentially hundreds if not thousands of people use and can significantly increase your customers' ROI is worth more than a Big Mac a month? Come on now, don't fall into the trendy startup blackhole of improper pricing. Charge.For.This. Make a lot of money. Build in analytics. Prove your value.

ebzlo 14y ago
No offense taken. Everybody here is completely right. We're going to change our pricing as soon as we step out of our closed beta.

hopeless 14y ago

You are not your customers! If is irrelevant what you would pay or how much value you would get from the service. If a good tour helps to retain just one subscription customer a month, that easily justifies x10 the $3 price.