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:
Are you interested in this product?
Would you pay for this product?
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!!
Sample is too small really but:
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?
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!