Have you lowered your price?
Today, I updated my pricing model. I believed my product was so valuable that people would pay $10/month for it, but what I found is that it’s incredibly difficult to find people who will even sign up for a free trial.
I’m not blind to the fact that this is likely a marketing/sales problem if people aren’t seeing the value prior to signing up. My small group of customers do find value in it, but they were not easy to acquire.
I lowered my price from $10/month to $5/month to drive adoption. I also set up a coupon for an additional month for free that I can use to cold message influencers to entice them to try it out.
Im open to any suggestions, so feel free to comment some advice. My app is a B2C meal planner. Im leveraging Facebook and Pinterest to attempt to acquire customers.
Hit me up with ideas!
I've dropped once and realized it wasn't the price. It's almost never the price. I didn't have enough reach. There is a pretty metric, conversion rate. I was getting 100 visits and 1 sale out of it. Simple.
Dropping the price to half suppose to increase the sales, yet it didn't. It only decreased my interest in the project. Its value gone half by my choice and I was already unhappy with its current returns. So basically I made myself to work twice to make the same amount, convert two visits to customers to make the same money.
So the lesson I take for myself was to never cut the prices but to work to make my product worth the price. Either by talking with the existing customers or finding ways to expand the reach.
edit: I noticed you are offering coupon codes, in the comments... That time would be spent better if you targeted the right audience for your product.
In your case dropping the price isn't going to change anything. It's a marketing/value proposition problem.
Your price is already pretty low. Decreasing it will just result in needing to have 2x more paid users to achieve your desired financial outcome.
You got to talk to potential customers and find out how to increase the value of your product, how to deliver the value proposition to your customers and how to keep up with everything you learn (research, build, gather feedback, iterate).
Anyway cutting the price in half will just generate more headache.
Consider selling per user to personal trainers, nutritionists, dieticians, fitness camps. If a single user won't pay $5 a month, perhaps someone who has 30 clients will pay: $99 a month to add value to their existing offering.
That’s an excellent idea.
Feel free to try it out for an additional month with the coupon SUPERSIZE
@yousaiditchewie I looked at your meal planner app and I fail to see why would I use your product (even for free). I'm in charge of meal planning at home and don't see the value in it. However, I'm not a huge fan of recipes in general (except to look for ideas, just can't follow them).
Here's how I got about meal planning (in hope it helps you spin this around).
Receipes I have more issues is vegan/vegetrian because I'm not super used to cook those so I would look for receipes for those.
I don't often keep receipes I get online and when I do, I just store them in Notion.
So here are a few questions for you:
On a positive note, the design looks good.
I don't think you should lower your price just yet, or maybe add a free tier that you monetize with ads or affiliate links. However, a sub 10$ subscription fee is IMO not worth it. The volume required to make the product worth it might be too much.
Instead, I's suggest that you find a ways to provide more value.
Here are a few ideas:
Other monetization avenues:
Since you have subscriptions, you should already have an (albeit small) e-mail list, you could also send offers to your subscribers.
Thank you so much for the thoughtful advice. Sending offers to my list is a great idea!
If you’re willing, I’d love to hear your feedback on my product. Here’s a coupon to use it free for two months.
SUPERSIZE
What's the customer feedback been around the price vs value of the app? Also, prior to changing the monthly subscription price, did you offer x months free or some discount for annual?
I heard feedback that the price was too high. I also offered a month for free, but with a coupon. My intentions with the trial period were to reduce friction for signup.
Makes sense...think about providing value to potential customers BEYOND what your solution gives. For instance, you can always promote what they are doing on social, which is a win-win. You can also incentivize those customers to promote the app and get sign ups on your behalf with more free stuff by just asking if they know others who would benefit from the product.
Beyond that, think about partnering with other organizations that already do meal planning and highlight your product differentiators. Those organizations can also benefit from what you are doing in a B2B2C kind of way.
Thanks for the ideas! I have plans to shift it into a B2B2C model, so that’s right inline with what I’m thinking.