5 ms·

* We'd be happy to be proven wrong, but we believe $4.95 converts better than $5. * We'd be happy to charge more. We have nothing to go on yet but intuition, a

by smarx 14y ago

* We'd be happy to be proven wrong, but we believe $4.95 converts better than $5. * We'd be happy to charge more. We have nothing to go on yet but intuition, and we think $5 is the right amount. * This is intriguing, but I think we need to find the right value to provide in order to offer something like that. * This is actually what we do.

tnorthcutt 14y ago
Yeah, but are you testing those beliefs?
- smarx 14y ago
  Do you have some suggestions for how to test them?
  - rhizome 14y ago
    A/B testing. Try something like coupon codes or just two different plans that are presented as "basic plan" (or whatever. Some get plan 1A, some 1B.
    - absherwin 14y ago
      What you want to avoid with this sort of AB testing is the same person seeing multiple prices. The easiest, decently close approximation is just to split the page served by geocoded IP. The regions should be split randomly up-front. Also don't underestimate the value of the more expensive plan to making your $4.95 plan look cheap. A simple answer to what could be premium is contained in your terms: Make the $99/month plan suitable for use in a production environment, as web middleware or a backend, etc by relaxing restrictions and having some sort of SLA.
  - thomaslangston 14y ago
    One way to test it is merely to offer larger tiers, in addition to your $5 plan. You may be surprised by your customers' behavior.
lurchpop 14y ago
$4.95 converts better than $5. We think $5 is the right amount.
kalid 14y ago
* No prob :). The beauty of the web is experimentation. Use VisualWebsiteOptimizer.com and run some quick A/B tests with two pricing tables [one at 4.95, another with $5]. * Test that assumption too :). Have table 1 with free/$5, table 2 with "Free trial", $10, $199 [pro]. Track "conversion revenue" not raw conversions. * Large customers want to know they can get help if they need it, not be stuck in the same email queue as the $5/month hobbyists :). That peace of mind is worth a few hundred a month. * I see -- your wording on the hover tip says "deleted" (in bold) so easy to misconstrue :). If you said "archived (and reactivated when you upgrade)" I'd feel a lot more comfortable. In my head I thought "Oh, they're deleting my scripts? So I have to decide on day 6 if I want to upgrade?". patio11's site is full of good advice for this type of thing (http://www.kalzumeus.com/2012/09/21/ramit-sethi-and-patrick-mckenzie-on-why-your-customers-would-be-happier-if-you-charged-more/ http://www.kalzumeus.com/2012/09/21/ramit-sethi-and-patrick-...). I want you guys to charge more so you are more sustainable, and therefore I can rely on you [if you go away after a year, I have to painfully migrate away to a new provider, which isn't worth the $5/month price savings. An hour of a programmer's time spent in migration, and it'd be much more, is much more expensive than the service].

by smarx 14y ago

tnorthcutt 14y ago

Yeah, but are you testing those beliefs?

smarx 14y ago
Do you have some suggestions for how to test them?
- rhizome 14y ago
  A/B testing. Try something like coupon codes or just two different plans that are presented as "basic plan" (or whatever. Some get plan 1A, some 1B.
  - absherwin 14y ago
    What you want to avoid with this sort of AB testing is the same person seeing multiple prices. The easiest, decently close approximation is just to split the page served by geocoded IP. The regions should be split randomly up-front. Also don't underestimate the value of the more expensive plan to making your $4.95 plan look cheap. A simple answer to what could be premium is contained in your terms: Make the $99/month plan suitable for use in a production environment, as web middleware or a backend, etc by relaxing restrictions and having some sort of SLA.
- thomaslangston 14y ago
  One way to test it is merely to offer larger tiers, in addition to your $5 plan. You may be surprised by your customers' behavior.

lurchpop 14y ago

$4.95 converts better than $5. We think $5 is the right amount.

kalid 14y ago

* No prob :). The beauty of the web is experimentation. Use VisualWebsiteOptimizer.com and run some quick A/B tests with two pricing tables [one at 4.95, another with $5]. * Test that assumption too :). Have table 1 with free/$5, table 2 with "Free trial", $10, $199 [pro]. Track "conversion revenue" not raw conversions. * Large customers want to know they can get help if they need it, not be stuck in the same email queue as the $5/month hobbyists :). That peace of mind is worth a few hundred a month. * I see -- your wording on the hover tip says "deleted" (in bold) so easy to misconstrue :). If you said "archived (and reactivated when you upgrade)" I'd feel a lot more comfortable. In my head I thought "Oh, they're deleting my scripts? So I have to decide on day 6 if I want to upgrade?". patio11's site is full of good advice for this type of thing (http://www.kalzumeus.com/2012/09/21/ramit-sethi-and-patrick-mckenzie-on-why-your-customers-would-be-happier-if-you-charged-more/ http://www.kalzumeus.com/2012/09/21/ramit-sethi-and-patrick-...). I want you guys to charge more so you are more sustainable, and therefore I can rely on you [if you go away after a year, I have to painfully migrate away to a new provider, which isn't worth the $5/month price savings. An hour of a programmer's time spent in migration, and it'd be much more, is much more expensive than the service].