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5 Comments

Fail: I messed up my pricing model, and here's what I will do next

In this post I want to share with you a recent failed pricing strategy I adopted at Giglio-Designs.com, and would be keen in hearing your thoughts on the new solution.

❌ Problem:

In recent months I tried changing the pricing model of Giglio-Designs.com to an hourly offer with 4 packages:

8 hours/month at $299
20 hours/month at $699
40 hours/month at $1299
80 hours/month at $2399

The issue I ran into was confusion as to how much we could do is set amount of hours and most people selecting the lower tier, which would then result in the need to upsell them to a higher tier when they used up those hours (not a great experience and I don't like having to ask for more).

It wasn't exactly a complete failure since we still made some good revenue, but scalability and clarity when selling are two major issues that makes me want to shift into..

✅ The Solution

To solve this, I thought of removing the hourly rate out of the equation entirely, and just focus on output. Also, I decided to remove the lower tiers and offer a trial week at just $97 (maybe too low, but might be worth it as a long term acquisition investment) so that clients can have us do a test run before committing.

Here's the new plans:

$97 for a 1 week trial
$1299 for 1 design request at a time
$2399 for 2 design requests at a time

What's your thoughts from a business owner's perspective?

Keen in hearing your ideas.

on January 28, 2023
    1. 2

      Loving it, thanks for sharing!

  1. 1

    I'd rather focus on the output than the hours. You could be sitting for 6 hours basically doing nothing and still get paid. And that's the major objection people have.

    I also tried to understand your value prop, and it was a kinda hard task to do.

    When you say "Design solutions at delightful prices for SaaS + Tech"... what do you mean?

    What's the outcome you provide? What's the biggest pain you solve?

    Let's say you provided a brand identity kit.

    Or a logo.

    Ot a color palette.

    All of these are specific outcomes.

    Yet "Design solutions" is not specific at all.

    Also, there are no big reasons to jump with you on a call. Why should the user do it?

    Are you providing a specific service for free?

    Are you giving them a proven framework so they can choose their brand design?

    Asking you these questions so you can see how unspecific you are on the lander.

    1. 1

      Great points Donixs, I appreciate the feedback and will adjust accordingly.