Should I increase my pricing?
Hello indiehackers!
I've been building a monthly-updated dataset on Shopify stores. The use cases are prospecting and market research.
And I've reach a point where I would love external input.
Should I increase my pricing?
On one hand, I want to make an offer so good people would feel stupid not buying. I would love this product to be known for being a high ROI purchase.
It's also a product I enjoy building even at a loss, I enjoy knowing it helps people, and it's a side project. So I don't have any pressure to increase revenue for now.
On the other hand, I know that a higher price will make the product look better in the eye of buyers. Do you think it could even attract more customers?
I would love to read your takes 👀
More details about my product
The full dataset currently costs $19/month (it's a subscription because it's updated monthly). You can check it here: https://thibpat.gumroad.com/l/top-shopify-stores.
I've been publishing it for 6 months, I enjoy the process even though it's not attracting a ton of customers (2 active subscriptions = 38€ MRR).
My established competitors pricing starts at:
- 75€/month for https://storeleads.app/
- $399/month for https://charm.io/
I am aware that they offer a much more detailed view of shops, however they heavily limit how many shops you can view. And I keep adding more data about each shop every month.
Thanks for reading!
It's unlikely a price increase in this case will attract sales, especially when you've made only 2 so far.
You should focus on finding a marketing funnel that reliably leads to sales, and THEN try to optimize your pricing strategy. Right now worrying about it is likely just wasting your time.
I have to agree. I'm at the same spot with my product and right now pricing is the last thing I need to optimize.
With only two active subscriptions, you're still in the customer acquisition and validation phase. The goal should be to achieve product-market fit before tinkering with pricing strategies.
Why? Digital products like datasets often have a "value-based pricing" model. This means the price is determined by how much value the customer perceives. Right now, you're still in the early stages, and it's crucial to build that perceived value first.
Your competitors are charging a lot more because they offer more detailed views, even if they limit access.
Think perceived value of Google sheets dataset vs a UI interface to access data.
A tip from personal experience: Retaining old customers is five times easier than acquiring new ones (as per a study I once read in Entrepreneur). So, maybe offer a loyalty discount to your current subscribers when you do decide to increase the price. This will not only keep them around, but also make them feel valued.
raise the value
find customers at that price and raised value
raise the price until they complain
find more
I would consider finding a few good lead getters for your service/product and have them review / promote your website in whatever you guys agree on. You need a few testimonials to start, word of mouth and natural referral/affiliates has been the best for our business.
So you're just starting out, I think you should lower the price just to get reviews and testimonials because these will later help you when you increase your pricing.
If no one complains your price is too high - it is too low!
I have heard this mentioned a ton, and while it sort of makes sense, I just can't wrap my head around it.
If no one is complaining about your price, doesn't that mean they find your product valuable?
Upselling. Your target always has new requirement. Be aware of that and ready to deliver your value proposal
Depends on how dependent your customer are on your product. It could be that people using your product because it is cheap options. How about you ask the customer their suggestion ? Maybe a survey that revolve around finding out how dependent they are on the product. Ask something like what other option they would consider if the product is not here etc.
Essentially if people dependent on the product making it expensive will help you focus on the right people. The user will become smaller and easier to focus with you getting more revenue all win win if you manage to increase it.
Here an article that might help you understand that pricing is always depend on what people willing to pay which depend on the amount of value it bring to the customer.
The article: How to price my product? Value based pricing