3
5 Comments

Finding a reasonable pricing

Hey πŸ‘‹
How do you find a reasonable pricing for your product? What are the key factors and strategies to find the perfect pricing for a product? How did you find the pricing for your own product?

on March 17, 2020
  1. 2

    you find reasonable pricing by asking your customers and talking to them about their problems and reverse-engineering their weekly / monthly spend. this is just a good starting point, comparative data and basic modeling.

    the next step is to just price it and see if it works. price more than you think you should because you can always go cheaper later.

    "raise prices" is a very common thing we all have heard and said but few people do. i just did this with a small 5-day bootcamp that i charge much more than i thought i wanted to. but, we got some sales. now, it's about optimization and repeating that behavior.

    i've done 3 cohorts and i'm about to book my 4th in just a few weeks β€” it can literally go that fast.

    here's my updated revenue:

    what

    so, we're still moving in the right direction... but this is just the start. we have a loooooooong way to go.

    execute (it's a guess the first time) ~> iterate ~> experiment again and again and again.

    your customers will tell you, literally, if you're not on the right track. either they will pay you or they won't. it's lovely that way. binary, even.

    1. 3

      How has your pricing changed over each cohort?

      1. 2

        i shared an update and referenced this question:

        https://www.indiehackers.com/product/yen/3rd-cohort-finishes--M2t4LHpE_e3K4nrqskz

        (*thank you for that!)

      2. 2

        it hasn't β€” i continue to meet my goals of and the pricing seems adequate atm... but, i am taking a break after #yenDELTA (the 4th cohort) to assess the product and to spend a bit more time writing code.

        i'm very happy with my first "landing spot" with pricing and am grateful for just enough demand that i can weed out "bad" early customers and community members while having enough demand to warrant screening and pre-interviews. this is good data all-around anyways for us.

        i don't think i'll change much until i have some double-digit subscriptions and maybe two-dozen cohort members. that's just a guess though.

  2. 1

    I have no experience myself, but I really liked this talk and see it recommended pretty often.
    Maybe it can help :) good luck

    https://kaue.me/posts/2019/09/14/jason-cohen-designing-the-ideal-bootstrapped-business-summary/