How to update a pricing plan : MVP to a new version?
Hi there!
I'm looking for feedback about pricing plans, particularly when you start with an MVP. I will only provide some core features that can be later declined in different options.
Let's take a concrete example.
Your MVP is about audio optimization with also the possibility to publish it on different podcast platforms. Then later you extend the service for videos, and add some features to edit audio and video with a timeline.
Your MVP compared to your final version is now completely different. Let's say we want to keep a simple pricing plan with a subscription model.
Questions
- How do you set the price for an MVP? Based on your current costs + value provided or the future ones?
- Do you update your pricing based on the features you provide? If yes, when is it the right time to change it? I don't think updating it regularly is a good idea, you might lose customers. Which means you can't do continuous delivery, and you will need to deliver features by big batches to justify the price.
- How do you communicate the new price? I suppose there are some legal steps.
🙏Thank you!
Personally, I think your pricing should only ever reflect value, combined with an understanding of the amount people are willing to pay.
I've started multiple businesses, and the only ones that have succeeded are the ones that I have charged based on value and the amount people are willing to pay. If you price too low just to get users, it devalues your product. People will think "why are they only charging $5 (for example), there must be something wrong with it", especially if your competitors are charging way higher.
Thanks for the feedback! I'm still building the product but I start to think about it. Indeed I would like to send a survey to my early subscribers and ask them what they are willing to pay. I'll make different offers and see which one works. Same for the landing page, I'll create a new version and add a quick survey to subscribe.
But once the MVP is out, I'll add more features. And I don't necessarily want to have a subscription model based on the features. I was thinking to a package. The package will grow over time, same for the price as the value grow too.
I think you can always increase the price as you provide more value. Maybe you could keep prices the same for original users, maybe not. There is no right or wrong answer to how you increase prices, separate prices between packages/features, etc. As long as pricing reflects value, you'll find it much easier to bring on paying customers.
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