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2 Comments

Help needed with pricing survey results

My co-founder and I had an idea for a new product.

Unsure of the specifics, we decided to survey people in our network.

We wrote a description of the product we had in mind and asked 3 questions:

  1. Are you interested in this product?

  2. Would you pay for this product?

  3. How much would you pay for this product?

We got 8 responses on the survey:

  • We got a lot of great insights that shifted quite a lot the initial product idea.

  • 5 out of 8 said yes to the first 2 questions.

  • The MEDIAN price they would be willing to pay is $150/yr.

  • The AVERAGE price is $269/yr.

  • 37,5% said they would pay $500 and above per year.

  • 37,5% said they would pay between $100 and $200/yr.

  • 25% said they would pay below $100/yr.

Now that we have advanced in the product building and set up a roll-out of the MVP for the end of April, we need to decide on a launch price.

What price do you think we should setup?

Right now we're thinking about going with a discounted version of the median price ($150) for the launch, but we're not sure how to approach this.

Any insights, ideas would help! Thank you!!

on March 31, 2021
  1. 2

    Sample is too small really but:

    • 3 * $500 =$1500
    • 6 * $150 = $900

    Why would you take on more clients for less money?
    Why not find more $500 clients?
    Why not serve the 3 for $500 and serve the rest with a reduced service for $150?

    1. 1

      Excellent point! Thanks for this.

      We discussed this with my co-founder.

      The $500 clients seem to have a high perceived value but we're not sure they would really pay this amount when it's actually time to pay.

      Why?

      • We're a B2B company and the purchase would probably involve other people on their side who might not be as excited.

      • There are competing products cheaper than $500. Not as qualitative (we think) but still very good competitors. Maybe they are not as informed of what's in the market. And a quick search would show them that $500 might be too much.

      • The effort to acquire those $500 clients would be harder than the $150 ones (just guessing here).

      Creating a reduced service at $150 is an excellent idea I'll definitely look into with my partner.

      Thanks a lot for your input!