Above-the-fold value primer Pricing matrix Social proof Frequently asked questions
Clear differentiation by cloud storage and number of users. Their household tier bundles high-value features to show it is more valuable as the price increases. Simple to understand value prop. Compelling design pattern: Easy-to-read feature list Price anchoring around the middle tier Highlighting the most popular option Strong CTAs
I recommend using the PCR test to generate solutions quickly. P stands for product solutions. C for content solutions that you consume (i.e., webinars, blog posts, guides, etc). R for resources that you use (i.e., website graders, quizzes, helpful databases, discounts on tools, etc.)
Phase 1: Craft the packages Phase 2: Identify your value metric(s) Phase 3: Identify your ideal pricing Phase 4: Design your pricing page
The main disadvantage of deploying a user-hungry strategy is it can be expensive to pull off, and you can attract lots of non-ideal users.
Yet, it’s a short-term strategy. Over time, focusing on forcing people to upgrade and providing less value might slow down your customer acquisition model as users start looking for alternatives to your solution.
A short-term profit strategy is when you have a weak customer acquisition model and give very little free value while leaning heavily into upgrading each user.
The last strategy isn’t really a strategy. It’s a place you want to avoid. It’s when you give everything away for free and have little to no people checking out what you’re doing
Along the journey, she’s going to hit several milestones, such as: Beginner Milestone: Delivering incredible client experiences without any hassle Intermediate Milestone: Becoming a professional photographer Advanced Milestone: Scale their business so they have time and financial freedom
Action items: Build out your packages Give your users everything they need to complete each milestone successfully
According to Patrick Campbell, CEO of ProfitWell, there are two types of value metrics: functional and outcome-based.
Value metrics are useful in answering two key questions: What does our ideal customer want in a product or service like ours? How much is the ideal customer willing and able to pay?
As Campbell explains, “The reason per-user pricing kills your growth and sets you up for long-term failure is that it’s rarely where the value is ascribed to your product.”
To recap, here are your action items: Make a list of your top potential value metrics. Narrow down your list by taking each value metric through the value metric scratchpad. Choose one or two value metrics.
By now, you should have at least a couple of hypotheses about your value metric: Is it messages sent? The number of users? Total revenue generated?
While the proper technique involves four categories of questions, I focus on two: What the buyer considers an “acceptable” price (good value for the money) and At what point the price would start to get “expensive” (they’d have to think twice about buying it).
What the buyer considers an “acceptable” price (good value for the money) and At what point the price would start to get “expensive” (they’d have to think twice about buying it).
As for how you ask, there are two main ways: Survey tools (Typeform, SurveyMonkey) Interviews
Pay attention to the points of intersection. Between the “Acceptable” and “Too Expensive” price ranges, the Optimal Price Point shows where people consider our product cheap. Don’t charge less than that.
Determine who you’re going to ask your pricing questions to. Create a simple survey to send your users. Analyze the data to determine your optimal price point for each package.
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