April 13, 2019

Should we always charge more?

Spent a ton of time on this piece, exploring how we price software. 🌶️

https://justinjackson.ca/charge-more

  1. 2

    Thanks for the article, Justin, enjoyed reading this. I love Basecamp's pricing, but it feels like a total outlier nowadays to have absolutely no plan tiering. But I love that they can do it successfully.

    I agree there are nuances to the pricing discussion that get lost in 'charge more' -- perhaps this was more of a problem in the earlier days of SaaS, but at some point, it seems, the advice will be widely diffused enough that most people are charging reasonable prices, and the global advice will now be wrong.

    There may be some general advice around value capture that will always apply more broadly -- 'don't offer unlimited plans', maybe -- but there's nuance everywhere, as usual :).

    Anyway, thanks again for the perspective! The 'maybe charge less' comments floating around recently have been good for me to consider, though I recognize it'd be silly for me to overthink it at this stage. ;)

  2. 2

    I've always enjoyed your writing.

    1. 1

      Thanks! I've been trying to write something, every week, for my list.

  3. 2

    Solid piece of content you got out there!

    systeme.io starts at $27 per month when our competitors start from $97 per month.

    This helped us a lot to grow to 1500 paying customers one year after launching.

    A book that influenced me a lot is "Simplify" by Richard Koch where he explains that companies who come up with a product that is a lot cheaper will not only gain market share but also actually expand the market

    (some of our customers would not have purchased our competitor's products)

    Many people talk about pricing but it's rarely backed by actual data. I did a lot of tests on pricing and found pretty much every time that the more you lower your price, the more money you make

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      Many people talk about pricing but it's rarely backed by actual data.

      This is key. We need to do reasonable tests, at the right stage of our business' development.

  4. 2

    Thank you, enjoyed the read, very fair points there.

    1. 1

      Thanks Paul!

  5. 1

    Great read, thanks!

    1. 1

      Thanks Philip!