Category Archives for "Pricing Experiments"

How to Optimize Your Prices to Increase Subscription Revenues

Many subscription companies simply set a price and start selling their products ASAP. That’s great when it comes to getting an MVP out the door — but it can also leave a lot of money on the table. Whether it’s price plans that let you charge more for more features or lower-priced plans that can prevent voluntary churn, there’s a lot to experiment with. Along with reducing involuntary churn, tweaking your pricing is another area that can produce tremendous returns. Successful companies like Buffer have taken seemingly-drastic steps towards price optimization in the past. At the 2016 SaaStr Conference, Buffer co-founder Leo Widrich spoke of their decision to double Buffer’s pricing. They had no idea what would happen, but they […]

The Biggest Pricing Table Mistake

The pricing table is arguably the most important element of your pricing page — but many businesses are making a key mistake when it comes to theirs. What is it and how can you address it? The value isn’t clear Your pricing table needs to do two things at once: Convey the price (and subscription schedule) of your product Communicate the value of your product If your pricing table isn’t clearly communicating the value to your customer, you’re not going to sell as many subscriptions. Customers might even wind up signing up for the wrong product or plan, because they’re confused about what features are offered in each. In turn, that customer confusion can lead to buyer’s remorse (which can, in […]

Make Me an Offer

Today’s marketplace is switching away from the prohibitively high upfront costs of software and services of the past. These price tags did little to discourage counterfeiting and instead encouraged competitors to seek cheaper, more accessible products, even if the quality wasn’t always comparable. Instead, subscription-based services are becoming popular, giving consumers an affordable price and the ability to make changes as needed. This has created an explosion of growth within the affected industries. However, the new obstacle facing subscription providers, whether it be for software or services, is how to maintain a base of customers who are always seeking the better deal. The secret is to provide them with something extra in order to create interest in the product. Bonus […]