3 ms·
Various pricing schemes: Price what everyone else is charging ($5, $10, $20 per month) Price according to value (you're saving people 200 labor hours per y
by jerrya 14y ago
Various pricing schemes:
Price what everyone else is charging ($5, $10, $20 per month)
Price according to value (you're saving people 200 labor hours per year, price it
at 200 * hourly wage)
Price at the ideal price (good luck finding it, and if customers catch wind
you're playing a/b games with them, barricade your doors)
Price discriminate (create different pricing options for basically the
same product with different features and attributes, maybe based on amount
of use, maybe based on premium features)
Another real world tactic: create competitors or offbranded versions of the same service. This can help support your branded cost by allowing unbranded seemingly less good products be sold at lower prices to price discriminating consumers. It can let you sell to two groups of customers as well, including those customers your competitors might steal. It can make your entire market seem that much more of a real thing since now there seem to be competitors in it. In can drive up barriers to entry since there are competitors, and since you have the various pricing schemes already covered.
The article mentions that you can't ask people how much something costs, what matters is their behavior. And that's true. But I think you can ask people to compare products and services with known prices to your new product. Do you pay for Evernote at $5 per month and Spotify at $10 per month? If you could only pay for one at $7 per month, which one would you pay for? If you could only pay for Evernote at $5 per month, or my new site that does X at $5 per month which would you pay for? And you can do A/B testing on those prices.