How much should you charge: $x0 vs x9?
How much should you charge for SAAS product? Price that finishes with 0 or 9?
For example, will $49 help you to get more customers vs $50 (if we keep everything else equal)?
How much should you charge for SAAS product? Price that finishes with 0 or 9?
For example, will $49 help you to get more customers vs $50 (if we keep everything else equal)?
In retail it makes a big difference.. and there are lots of studies done on it, as well as stuff like 33 vs 35 etc..
I think part of it for software, subscriptions etc has to do with:
Then there is price.. under $10 - keep it simple and round. ie $7 or $10, not $9.95 etc
Over $10 - go for round unless it's a 1 time purchase.
At the end of the day.. every penny you give away on price ads up over time.
Also I wouldn't overthink it too much. Look at what 10 big sites that are similar are doing.. IE Google for GSuite, Trello, Zoho etc - they have probably spent a bunch of time and money on research, hiring people with expertise etc.. Do what they are doing :)
Why don't you A/B test that? Would be very curious to know the answer too.
Unless you have thousands of users/data points, statistically you get useless data.
Furthermore don't overthink it at the very early stages.
how would you A/B test this accurately ? it seems to me that it would be very hard to distinguish the usual variations in conversion and other factors from the (probably super small) price effects of 19 vs 20 or 9 vs 10
I guess you would need to set a confidence interval (probably larger than the usual 5%) and see if the results fall outside that once you have a large enough sample size.
This comment was deleted 8 years ago
This comment was deleted 8 years ago