Daily Growth tip: Simplify yourpricing to increase salesGenerally speaking, the simpler your pricing is, the better your product will be perceived. To get more sales, simplify both the price and how it's presented.
People like simple prices — even if the price is higher. In fact, in one study, 65.9% of participants chose a simply-priced product over a cheaper product that had more complex pricing. It seems that consumers see simpler prices as fairer and lower. So make your pricing as simple as you can — at least as simple as your competitors'. Consider removing pricing components, as flat-rate, all-inclusive prices are far simpler. But even if you opt for something like usage-based pricing, you can still simplify in small ways. Try using rounded numbers in your prices, do the calculations so customers don't have to, be very clear about charges (no fine print), and so on.
07/22/2022, 8:19 PM
Can you ellaborate what you mean with "simple prices" and can you an example ?
07/25/2022, 11:26 AM
Hey @OMally Hooplot sorry for my late reply here, simple pricing means that your potential customer can easily understand the pricing and he doesn't have to calculate anything or ask someone else to understand the price.
I would say the simplest pricing strategy is *Cost-plus pricing y*ou just take the product production cost and add a certain percentage to it. While simple, it is less than ideal for anything but physical products.
For SaaS specifically I would say the best pricing strategy is Value-based pricing. The way this pricing works is that you set your prices according to what consumers think your product is worth.
Here is a nice article explaining more about value-based pricing https://www.profitwell.com/recur/all/value-based-pricing
Hope this helps OMally