Pricing Experiments

This article on pricing experiments is very interesting.  Give it a read if you are at the point of revenue and looking for additional ways to monetize / guide purchasing decisions.

Summary:

  • Offer three options (Option A, Option A-, and Option B) – People will compare Option A to Option A- and more often choose Option A.
  • End your prices in 9.  Mention old price crossed out.   = More Sales!
  • Anchor your prices: Toss out high priced alternatives to convey the VALUE of what you actually sell
  • Simple pricing for value propositions which include “simplicity”
  • Consider name your own pricing with a “suggested” price
  • Price perception: IE Pennies a day.. or change the perception of the category you are.  IE Starbucks isn’t in selling coffee.  They sell the experience

Amazing things to consider.  It is a bit early for where we are with InfoActive but will hopefully have the ‘pricing’ problem soon!

 

Author: Adam Perkins

Startup Entrepreneur from Madison Wisconsin.