founders, VC's, mentors and startup experts.
Sometimes your customers know that you provide a feature they want, but for some reason, they don't use it. Why... Read more... You're reading Price is what you pay, Value is what you get. ...
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Via: The Intercom Blog
COO at @Intercom. I speak & write about UX, Customer Acquisi |
Take a look at this image courtesy of Planet Money What you see are the annual revenue numbers for MegaBloks and Lego. Since Lego does not have (any more) exclusive rights to make the bricks, anyone can make them. And MegaBloks does. Its bricks are perfect replacement (as for as I know) for Lego bricks only cheaper. ...
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Via: Iterative Path
Practicing Effective Pricing |
In my hurry to launch my first product, an eBook called The App Design Handbook, I almost made a mistake that would have cost me over $10,000, a mistake that I see being made with products all around the web. Luckily for me, a few people were kind enough to lead by example and show how important it was to fix this. ...
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Via: Think Traffic
Founder and Designer at Legend. App designer, writer, travel |
Founder Feedback gives you insight from the startup trenches. In a post from his blog, Dave Parker, Co-Founder and CEO of Bundled.com and Director of the Seattle Founder Institute, explains how to hypothesize appopriate product pricing. Instead of putting off pricing until the last minute, Founders should begin thinking about and planning their financial model early on. ...
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Husband, Dad, Entrepreneur, Board Member, Founder @OneAccord |
As consumers grow accustomed to automated payments and pay-per-use solutions, the benefits of fostering repetitive customer contact and creating recurring revenues through a subscription model are obvious. However, subscriptions should not be considered the end game for the billing world. ...
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Via: Marketing Profs
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how do people respond when they are presented a product or service without a corresponding price? I am specifically referring to situations where the seller invites the buyer to name his own price for something of value that is being offered by the seller. Evidence shows that when the user is asked to name his price he often quotes $0! ...
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Via: Filepicker.io
Co-Founder Filepicker.io. Growth hacker. Software sales & bi |
You know how it goes in economic theory: To maximize your returns, you find the maximum price each of your customer segments is willing to pay and charge them that amount. In practice though, this doesn't always play out the way our Econ 101 professors taught us. ...
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Via: Venture Beat
Software Entrepreneur focusing on Team Productivity. Involv |
I do a lot of work with B2B SaaS / Web App / and Cloud companies - of all sizes - on Free Trial Optimization, helping them turn their Free Trial into a Customer-Acquisition Machine! Well, I was just asked about $1 Trials on Quora and at first, I didn't think I had much to say on the topic... but I guess I do ...
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Via: SaaS Marketing
I help SaaS and Cloud companies acquire - and keep - more cu |
Many consumer Internet business executives are loyalists of the Lifetime Value model, often referred to as the LTV model or formula. Lifetime value is the net present value of the profit stream of a customer. This concept, which appears on the surface to be quite benign, is typically used to compare the costs of acquiring customers. ...
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Via: abovethecrowd.com
VC @Benchmark (investor @Twitter), blog: AboveTheCrowd, BOD |
What *exactly* should you do when you want to raise prices, especially on existing customers? ...
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Via: A Smart Bear
Keyword, buzzword, half-truth, adjective, hey look at me! |
In the last week I've talked with a few early stage startup founders about pricing. It seems pricing is often a large block for many. It's understandable, since there are so many decisions to make: When do you start charging? How much do you charge? Do you have a free plan? Do you have a trial period? How many tiers do you have? If you're like I was, it can also be very difficult to imagine anyone ...
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Via: joel.is
Founder of @bufferapp, a smarter way to share. Focused on th |
They raised their prices 10x and they made their customers HAPPIER! So I just had one of my quarterly Progress Check and Planning sessions with a Free Trial Dominator Premium Member - we'll call him "Larry" - who told me since they moved away from Freemium just 4 months ago to a Premium-only SaaS offering with a Free Trial they are now profitable and are on track to do $100,000 in revenue this mon ...
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Via: SaaS Marketing
I help SaaS and Cloud companies acquire - and keep - more cu |
Give the text in this picture a read. Clearly Wright brothers had it all wrong - starting with customer segment, choosing one that not only had a pressing need but also had the budget to pay for it and charging for the product. Had they made it free for all, after all ...
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Via: Iterative Path
Practicing Effective Pricing |
For those SaaS companies who've offered a Free Trial and had it fail, it is hard to see how it could ever work. For those who've never offered a Free Trial, the idea of adding an extra 30 or 60 days to the sales cycle seems like a bad idea ...
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Via: SaaS Marketing
I help SaaS and Cloud companies acquire - and keep - more cu |
There's been an illness going around startup land, a crippling disease that is paralyzing startups everywhere. This sickness is called fear of money, and thousands may be afflicted with this epidemic.A lot of startups, especially SaaS startups, are extending their free beta for far too long. So many companies seem scared of pulling the trigger and asking their users to give them a dollar, and evol ...
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Via: Ilya Lichtenstein
I've been driving traffic online for years. Now I'm building |
Server Density does server monitoring to a) give you peace of mind when all is well and b) alert you really darn quickly when all isn't. (Sidenote: If you run a software business, you absolutely need some form of server monitoring, because the application being down costs you money and trust. I personally use Scout because of great Ruby integration options. ...
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Via: Kalzumeus Software
I'm a small software developer. Blog: http://www.kalzumeus. |
The problem with casting a wide net and attempting to attract anyone that sort of needs what you do is that sometimes it works. Look through your client roster and tell me about your most troubling clients. The ones that came to you based on price, left and came back for the same reason ...
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Via: Duct Tape Marketing
Small business marketing consultant, speaker and author of D |
There is no such thing as an “inactive user” in a Free Trial. You can’t be a “user” if you aren’t “using,” right? Makes sense. I think we get confused because in software the “user” connotation comes from the fact that a user is literally someone for whom an access account has been created. For [...]Free Trial Users are a Vanity Metric is ...
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Via: SaaS Marketing
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Sometimes, the search for pricing proxies can lead to absurdity. I once heard someone from a prominent hardware company tell a story about how his company had offered two versions of a printer. The cheaper model was identical to the more expensive one, except the cheaper one printed fewer pages per minute. To accomplish this, the cheaper one had an additional chip that forced it to slow down. ...
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Via: chris dixon's blog
Founder & investor |
As marketers, bloggers, or business owners, you will most likely come to deal with the process of pricing your products or services. The thing is, many folks struggle with this process because although they understand their customer's needs, they aren't experience with what to charge people for their work. Below I've analyzed a few recent research studies that dive into pricing of products and ser ...
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Dropping science like a kid from Catholic school. Latest pro |
Choosing the freemium business model can be brilliant or deadly. The difference lies not only in the execution of the marketing, but also in the nature of your product and the design of your business. Can you coordinate all three to become sustainably freemium by making a profit? ...
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Via: Wensing
Pricing, segmentation, and #HackerDad tips. Co-founder & CE |
Preceden, a web-based timeline maker that I run, is free to try but costs $39 once to upgrade to a pro account, which let's you add an unlimited number of events to your timelines. Conveying this limitation to visitors has always been a bit tricky. The more I emphasize the cost, the lower the conversion rate is. However, you don't want to hide the cost completely, as that's both dishonest and wou ...
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Via: Matt Mazur
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You'd expect that the people who pay the most feel more entitled to support, and thus ask for more of it. So if the cheapest customers truly require the most support, why is that? At first, I intuitively assumed it was a matter of character: like people who pinch hotel slippers and airline blankets, they simply wanted to extract the most value out of any situation. ...
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Via: SachaGreif.com
Designer from Paris, now living in Osaka. Creator of @YoFoly |
I've been building a new product and I'm almost ready to launch it. However, I'm having a really hard time figuring out the right pricing structure so I'm going to analyze my favorite Freemium SaaS businesses. ...
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Via: On Startups
Entrepreneur. Founder/CTO @HubSpot inbound marketing and st |
There's a traditional, somewhat logical, pattern to how business has always been done. The seller describes a product or service, promise benefits, maybe even paints a rosy picture of the prospective buyer's life with said product or service, and asks the buyer to pay a set price in order to acquire it. ...
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Via: Duct Tape Marketing
Small business marketing consultant, speaker and author of D |
There are 3 types of data that every product manager or application owner should have easy access to: User Activity, Product Usage, and Revenue. ...
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Via: The Intercom Blog
COO at @Intercom. I speak & write about UX, Customer Acquisi |
Over the years, we have seen many businesses adopt a per-project or per-user pricing structure, which pushes customers to re-evaluate the value of the products they are using. Not only does this run the risk of losing customers, but it goes as far as punishing them for their loyalty. Why would any company chose to lose customers? More than that, why would they punish them for using their products? ...
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Via: ZURB Blog
ZURB is a close-knit team of product designers who help comp |
If two companies have the same revenue, one from a few large customers and the other from many little customers, which is better? Which would you rather build? ...
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Via: A Smart Bear
Keyword, buzzword, half-truth, adjective, hey look at me! |
One month ago on March 20 I released a short eBook entitled "Step by Step UI Design". Since then, I've sold the eBook over 2000 times and almost reached $10,000 in profits. A lot of people have asked me for more details about how I wrote, launched, and promoted the book, so here is a post-mortem to see what went right, what went wrong, and what you can learn from my own experience. ...
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Via: SachaGreif.com
Designer from Paris, now living in Osaka. Creator of @YoFoly |
Jarrod released his eBook about Design on exactly the same say as Sacha. He earned more money while selling only 1/6th as many books. Here's how, and why it's sometimes the best strategy. ...
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Via: A Smart Bear
Bootstrapper. Designer+developer. Author of http://Bootstrap |
Pricing strategy starts with customer segments and their needs. You cannot serve all segments, you need to make choices. Choose the segments you can target and deliver them a product at a price they are wiling to pay. ...
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Via: Iterative Path
Practicing Effective Pricing |
Intuitively, we tend to see prices as a consequence of a product's inherent worth, and marketers everywhere want to keep it that way. But psychologists know that prices have a lot more power than that: the right pricing can greatly contribute to a product's perceived worth, or even make the entirety of it (ever heard of diamonds?). ...
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Via: A Smart Bear
I'm an entrepreneur and designer from Paris. I'm the founder |
Recently KashFlow CEO Duane Jackson made the decision to reduce the trial periods offered on his product from 60 days down to 14. In blogging about this change, Jackson explained the decision saying; "We analysed our trial data and found that the vast majority of people who never converted from free trial to paid-up had logged into the software only once or twice." ...
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Via: Cloudave
Tech analyst, commentator and evangelist. Entrepreneur. Biz |
Debunking the top 3 Small Business Pricing Urban Legends. #1 - You can set your prices using your competitor's prices. #2 - Just set your prices lower than everyone else. #3 - Charge what feels right. ...
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Via: Carol Roth Blog
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We analysed our trial data and found that the vast majority of people who never converted from free trial to paid-up had logged into the software only once or twice. It could be argued that this just means they quickly determined the software wasn't for them and went off into the sunset never to be seen again. Maybe. ...
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Via: kashflow
33, Founder and CEO of KashFlow - Leading UK SaaS Accounting |
I believe if you intend to charge for your product, you should start testing pricing even before you build your MVP. Remember from the last post, that pricing is part of the product. Not only does this approach delay validation because it's too easy to say yes, but a lack of strong customer "commitment" can also be detrimental to optimal learning. ...
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Via: Spark59
Founder Spark59 - Helping Entrepreneurs Succeed. |
An optimal price is one that is accepted but not without some initial resistance. It is your job to both set that price and convince the customer... Pricing is considered more art than science but in the next series of posts I'd like to explore tactics for demystifying how to set and test pricing. ...
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Via: Swombat on Startups
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Somebody asked me the other day how can they charge more for their product. Like way more than people are used to paying for products in that category. The solution: create a new product category. Many companies have done this successfully. All you have to do is call your product something else and build a different kind of experience around it. ...
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Via: ConversionXL
I make websites sell. Conversion optimization pro. Founder o |
Your first sales goal is to get as many of the the right set of customers signed up as possible. You can absolutely A/B test your way into a successful launch. A launch with a laser focus, the right price, and a line around the block of people shaking fistfuls of money to give you. Here is how ...
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We all would like to believe there is nothing like our product or service. After all we are innovators and our vision is to change the way people do things. The investor pitch deck from a startup, Everest, sums up this attitude Let us take all such claims at face value and treat every one [...] ...
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Via: Iterative Path
Practicing Effective Pricing |
Two years back we saw the story of Starbucks price increase. Despite widespread criticism in the news media we saw no real ill effect on its sales or brand. You know why from here (elasticity) and here (demand curve shifts). Now they are rolling out price increases to the rest of the country. I want to point [...] ...
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Via: Iterative Path
Practicing Effective Pricing |
When Amazon introduced its Kindle Fire it positioned it as a direct competition to Apple’s expensive iPad. In a letter published in its landing page, Mr. Bezos drew a clear distinction between Apple’s pricing strategy and Amazon’s pricing strategy. Apple was not explicitly named in the letter, but not hard for all to see who [...] ...
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Via: Iterative Path
Practicing Effective Pricing |
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