[HN Gopher] A Guide to Pricing Plans
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A Guide to Pricing Plans
Author : jkuria
Score : 67 points
Date : 2020-04-17 03:04 UTC (1 days ago)
(HTM) web link (capitalandgrowth.org)
(TXT) w3m dump (capitalandgrowth.org)
| nsarafa wrote:
| Curious to read this, but the images won't load
| jkuria wrote:
| Something we are looking into.
| moonlighter wrote:
| They started loading for me after reloading the page without
| Content Blockers.
| HatchedLake721 wrote:
| That's a very great article. I'm actually launching
| https://automations.io next week, and I can tell you from my
| experience that setting a price for your product is tough.
| lmeyerov wrote:
| This is pretty bad advice: the more imp thing is figuring out
| pricing plans that increases consumption and scale. These are
| games you play after you figure that out. 10% boost is cool,
| expontential and magnitudes growth is your real business.
|
| Ex: can you get a tier for light users that converts when they're
| ready, goes up as they get addicted and happier, and then again
| as they go pro? Are the numbers aligned with their
| constraints/need/journey? Playing with color order matters way
| less and wastes your time from figuring this kind of stuff out.
|
| In contrast, for this hack stuff, the a/b testing people have
| realized for most co's, a lot of work to maintain for only
| limited benefits, so only do when you make enough money to layer
| on the maintenance $ for the limited lift.
| turkeywelder wrote:
| As a consumer I'm really not a fan of these techniques. I'm
| biased but our SaaS just has one price, no annual discount, no
| messing. It seems to be working out. I think people appreciate
| the straightforward approach when everything these days seems to
| have a pricing table.
| joosters wrote:
| _...Yet, this formula has never before been stated. That is,
| until now._
|
| ...page goes on to detail things that have been widely published
| and discussed all over the place.
| jkuria wrote:
| The independent findings have been published but no one had put
| them into a cohesive whole "formula".
|
| All the technologies Tesla uses existed but no one had created
| a Tesla :)
| davidajackson wrote:
| > Yes, Product C is slightly cheaper than the most expensive
| option, but it offers less storage than any of the options.
|
| Why would a business want wrong looking pricing on their pricing
| page, "decoy"s aside? Seems that would deter people more. Makes
| the business seem like it doesn't have its stuff together. Would
| you trust a company that seems like it can't do simple math? I
| think the author may be getting at something here--perhaps adding
| a third, unrelated or irrelevant option drives more conversions,
| but nonsensical pricing doesn't seem like the way to do that.
| lifeisstillgood wrote:
| I like the Golden Ratio approach (b+a : b as b:a). So you get a
| simple 5-3-2-1 approach
|
| 49 - 29 - 19
|
| for your pricing plans. Or I guess
|
| 125 - 74 - 49
|
| It's just easier to remember a fibonacci sequence than worry
| about marketing research.
|
| What surprises me however is the reverse ordering
|
| '''Reordering the pricing table in descending order from
| fastest/most expensive to lowest/cheapest resulted in a 14.9%
| increase in overall orders.'''
|
| I am not sure this carries from pricing - I recently bought a new
| ISP connection at home (lockdown, plus fibre to house suddenly
| became available). I went for the most expensive- partly because
| the _feature set_ was easily rankable. I could get 300, 600 or
| 1Gb - so going for the top level seemed easy (plus lockdown
| panic).
|
| But with features that don't rank (a book, a book with video
| course, a book with two hour consult with author), suddenly I am
| not comparing the same feature (download speed) but more of it, I
| am having to ask do I want this extra feature at all - i am in
| effect not making a pricing decision but making a feature choice
| decision, proxied by price.
|
| So I am not sure the research carries over. And that leads me
| back to the easy version of use the fib.
| wackget wrote:
| That website looks (and reads) like one of those single-page
| secret ebook sales web pages from the 90s.
| jkuria wrote:
| We are working on the look and feel but there is lots of great
| content.
|
| What do you think of these mockups:
|
| https://theconversionwizards-my.sharepoint.com/:i:/p/jasper/...
|
| https://theconversionwizards-my.sharepoint.com/:i:/p/jasper/...
| gk1 wrote:
| This is all about tricking people, and nothing about designing
| pricing to match the value provided.
|
| Pricing, especially for software products, is one of the biggest
| levers for increasing revenue through new and even current
| customers. It's very important to get it right, and to experiment
| occasionally. (I know because I've done it for companies.) It
| involves a lot more than growth-hacking the pricing page.
| gridlockd wrote:
| Why would you design a price for "value provided"? That's
| highly subjective to the user. Users also generally only pay
| for what they expect to pay, not the value they're getting.
|
| For instance, some utility might save hundreds of hours and
| thousands of dollars over the course of its usage, which is
| tremendous _value_. Yet if the average user expects that it
| should cost no more than, say, twenty dollars, that 's what
| they'll be ready to pay.
|
| This is why anchoring is beneficial, it gives you the
| opportunity to tilt that expectation a little bit.
|
| Is that "tricking the user"? Arguably, but since you can't know
| the value users will actually get out of your product, any
| claims in that regard will fall under "marketing BS" as well.
| Pick your bullshit wisely.
| thomk wrote:
| Can you expand a bit? I'm genuinely curious about your
| experience helping customers price products.
| csa wrote:
| This article does a very good job of explaining (with examples)
| some of the fundamentals of pricing plans. It describes the
| basics of the "blocking and tackling" if pricing that so many
| businesses get wrong.
|
| If you own a business, especially in the current environment, I
| would strongly suggest exploring the ideas in this article.
| erikrothoff wrote:
| Honestly, this just feels like marketing bull. What conversion
| effects are realistic to expect after implementing any of these?
| My experience after trying a couple is zero change in conversion
| and zero change in any customer satisfaction metric. It might
| work if you have product market fit and need to optimise the last
| 3% in conversions.
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(page generated 2020-04-18 23:00 UTC)