Why I decreased my prices! #BuildInPublic

Hey IH, my name is Tiago and I am the founder of the WBE Space which is a paid community for entrepreneurs and bootstrappers.

Today I decided to decrease the monthly membership and here is why...

It all started at 4 euros

I first started this community in November of 2021 and in the beginning, I priced it at 4 EUR (4.6 USD). Don't ask me why I picked that price, it just seemed a price that I would be willing to pay if I was a client...

Surprisingly it worked and people started to join! New members were joining every week and which each member joining I was able to get feedback to improve our WBE Space.

After three months we were already 30 very engaged members. The feedback was great and each entrepreneur was using the community on a daily basis some of them were actually meeting in person!

If it is working, let's increase the price!

After three months of working daily in increasing the quality of the virtual coworking space, I realized that the value of the community had increased a lot
So I asked some of the members to help me determine a new price.

The Majority Voted for 10 EUR

I was surprised with the max value that they were able to pay, so much so, that I decided to play it more conservatively and price it at 8 euros.

No More New Members

In the beginning, two new members joined ad I was really happy because they meant that I was probably able to keep the conversion and increase my profit.
However, this has not proven to be true and the conversion rate started to decrease greatly. Something was wrong and it could only be the price...

Reduced to 5$

And did another poll, this time on Twitter, and the results were the same. Apart from the people that voted 0 (which means that they are not interested in joining), the majority picked 10$!!

So, I decided to price it at 5$. My logic is that if people are willing to pay a max value of 10$ to join our community, pricing it at 5$ is a no brainer and the conversion rate will increase.

Conclusion

To be an entrepreneur is to be constantly experimenting! We come up with theories with things that might not work and we try to test them. A higher price would help me greatly but unfortunately was not well received by the customers, and so I changed it again. My plan now is to keep growing the community and maybe increase the prices later on once I have more users in the WBE Space

I hope you enjoyed this bit of my story!

Cheers