First things first - if you only have one price point, considering adding a few more.
50% of all new customers chose the $20 plan just because it was there!
A value metric is one that grows side by side with the added benefits received from your product.
For example, an SEO tool might price based on the number of keywords tracked (the larger the company the more keywords it'll need to track, the more value they get from your product, the more they pay).
Katlinks, an SEO platform, prices based on a number of various value metrics that scale with the business:
A blog platform might price based on pageviews. The more popular the blog, the more value from the platform, the more you charge for that value.
You can always put in place caps so the prices do not get outrageously high.
Something as simple as adding an annual option can result in more up-front cash. This works particularly well on lower-priced products. Some people even prefer to pay for an entire year just to avoid monthly charges - sounds crazy but true (I'm one of those people).
Most companies offer a 20%ish discount for those who pre-pay for a year. Not a bad trade-off for 10 months' worth of cash upfront! Use this to reinvest in your business or to scale acquisition efforts.
This one will take a bit of trial and error unless you really understand your customers. Limited certain features on lower tiers will bump a portion of those would-be customers to the next tier.
Pintura's company license sales went up by 600% when Rik limited the Hobby tier to 1 developer and 1 project.
The path of least resistance is a metaphorical expression that states: given alternative paths, an object will take the path of least resistance. In other words, it'll go with the flow.
It turns out, in life, most people also go with the flow.
Think about your own shopping experience. Do you narrow down your product searches based on top reviews only? I know I do. This is us taking the path of least resistance, the sure thing, whatever you want to call it - just go with the flow.
We do this to save time, to reduce cognitive load (ie. we're lazy). Giving people an option that is clearly presented as the path of least resistance will automatically default some percentage of them to take that path. I know, wizardry level stuff!
Knowing this, you can apply this principle by recommending a specific price tier. Doing so, also anchors any surrounding objects to that price by visually guiding our attention to that object first.
Pintura also does something else well, which brings me to my next point:
There are two paths to analyzing the page above. Most people will fall into one or the other:
An exception to the above is when you have tiers that increase based on some value metric, in which case it makes sense to show them in the order of increasing metrics. But, if you have an enterprise plan with a fixed charge, you could display it first.
Make your product feel more accessible by displaying the monthly price, even on the annual pricing tab. Go ahead and add the "billed annually as $X" part, but de-emphasize it.
The idea is not to trick anyone into any unexpected charges but to anchor them to that lower price instead of thinking actively about the larger annual charge.
Here is an example of Copy.ai that does it well:
Why have the annual tab selected by default?
Because your annual numbers will be lower than the monthly (when displayed as monthly) and when the user switches back to monthly, it'll feel as though they are paying more and "missing" that deal they just saw.
This is commonly referred to as loss aversion. Once a person established a reference point ($35 in our example image above), they are more sensitive to losses relative to that number (in our case, a loss in savings is when your price increases when switching over to monthly), than to gains. In other words, the loss of the discount is felt more deeply than when the discount is gained.
If your product pricing scales by some value metric, consider showing the price per that metric. For example, HotJar Business plans start at $99 (and you see $99 on the pricing page), but there is also a dropdown to choose how many daily sessions you might use up, and the price increases as more sessions are selected.
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