Pricing can be an evolving part of any product to get to the point of feeling like you have the right offering.
It would be great to hear from people of all stages of their business:
I charge $50/mo. Originally I was charging $15/mo but wasn't getting enough customers to make it worth my time. I didn't want to shut down because there were a handful of people who relied on the application. I decided to increase the price to something that I thought would stop people from signing up with the intention of letting the product slowly die over time. Then I had two companies sign up to the new price right after the increase. The rate of sign ups has pretty much stayed consistent from before and after the price increase. I even have a few people paying for the higher $100/mo plan. I do get some people complaining about the price, but they are never in my target market and wouldn't really get the value I'm trying to provide at their scale.
My advice:
Think about it this way: When you're pricing, you're essentially doing a Newton-Raphson on the supply-demand curve, trying to find the equilibrium. You're going to have to test several prices, so start from high and move towards low as you're scanning for that sweet spot...
I charge $6/mo for a Google Analytics alternative. I set that as the price because that's what I was prepared to pay when I was looking for alternatives myself.
I don't think it's the right price. It can be very hard to justify for GA users who are used to free analytics. For the customers that I have, a lot of it goes to service fees because of the low transaction amount.
I'm evaluating the idea of having a free tier and charging only the bigger customers. A free tier could get really expensive but it could also bring a ton of customers, some of whom will upgrade. If I had a free tier the lowest paid tier would probably start at $9/mo or $14/mo.
Another idea is to set the lowest tier at $1/mo, billed annually, with no questions asked money back guarantee. I'm not sure if this is a profitable considering the support costs. Luckily I don't get that many support queries at the moment.
Most of the advice I've seen is to charge more. I guess I'm going against the conventional advice by looking at ways to bring the price down. Why? Simply because I want to make privacy-friendly analytics more accessible to everyone.
Looking for feedback from people here. What would you pay for plausible.io? Is a yearly commitment at $1/mo scary? Is it less scary with a money-back guarantee?
I myself removed support from the free tier that I'm offering. Sort of open source/ community edition model. I propose to use the knowledge base or community for your tips and tricks. Worked wonders for some companies to activate their base.
Pay more and you'll get support.
Works no different in corporate settings where SLAs are super important always.
On your product, if you consider 1, then make it 1.99. Perceived equally low because of the 1 in there. Justify it with the no support and annual commitment (and page views). Then take it from there.
I wouldn't do free tier. Misses the point for an analytics tool that has a different business model than GA. People looking to use it, will understand.
(Send me a link for a 1.99 annual offer tomorrow, and I'll signup).
omg, please don't charge $1/m.
Simple Analytics which is another GA competitor charges $9/m i think and that's still really cheap.
Please charge more.
I agree with axtg. Don't have a free tier and make the lowest tier annual only. If wanting to attract users, keep it as low as you can justify for now. You can always raise that price later while grandfathering them in or offering a grace period.
I charge $29.99/month. Soon to offer $249.99/year.
My rule of thumb: charge enough that people who don't want to pay for stuff complain to you that it's too expensive, and people who understand its value think it's a steal.
My pitch is "save hours every day for $1 a day". It's hard to not see that as a bargain.
Every week I get people telling me my app is too expensive, and every month or so I get people asking if there's a special service they can pay more for.
Optimize for customers that want to pay!
Sometime in the next few months I'm going to try a two week $49.99/month experiment and see if it changes the signups.
I charge $99 for jobs adverts on No CS OK
Most job boards charge $300 so I'm pricing myself lower to start out
No one mentioned costs which should be the first parameter in any pricing strategy.
Know your costs and you won't have to raise the price 6 months later.
For todata.net I estimated an average cost of running a bucket to be around $5/mo.
Since I have a free tier, the first premium bucket really pays for two (the first free one and the second paid one) and that's how I ended up charging $14.99/mo per bucket.
I also made a competitors analysis and they're either targeting enterprise with 3 digits monthly subscriptions or charging per seat (at around $20/mo/user).
I think the challenge for pricing is always the lack of a quantitative method. There are tons of blog posts talking about pricing strategies, but very few talk about the actual numbers. In the end, you still have to "guess" your three plans' prices, especially when you are starting off.
I took an HBS online course Economics for managers to learn some of these concepts:
https://online.hbs.edu/blog/post/5-things-you-didnt-learn-in-undergrad-economics?slug=5-things-you-didnt-learn-in-undergrad-economics&cid=sm-tw-sf52111394&sf52111394=1
I'm curious to hear if any IHers have advice on pricing mobile apps (preferrably b2c).
No idea what I can/will charge for Moon 🤷♂️
I have a B2C mobile app. It syncs with a web version also, so you get both mobile and web subscriptions for the same price. My pricing is here: https://fantasyfootballcalculator.com/premium/plans
As for advice, it's just very hard to charge a significant amount of money without providing a significant amount of value. And even then you'll still have more churn than you would like. Try to make it something that people truly need every day and then you'll have an easier time charging and retaining customers.
Thanks for sharing Kevin! Super helpful!
Pricing is difficult, we plan on doubling prices soon as we have added a lot since our first paying customer.
Most likely going to grandfather existing customers, glad we set that up properly in stripe :)