pricing

Start with the $10/$100/$1,000 rule of thumb based on who your customer is, then pick a round number you can learn from rather than optimizing prematurely. Avoid ultra-low prices like $9/month, which create false traction and attract high-churn customers.

Choose a value metric that scales with the value customers receive, such as per user for collaboration tools, per usage for variable consumption, or per transaction for payments. Ask whether customers get more value as they use more of the metric; if yes, it aligns price with value.

Test the new price on new customers first, then roll out to 5-10% of existing customers in staggered waves while monitoring churn. Communicate the reason months in advance and soften the change with annual-plan lock-ins or grace periods rather than permanent grandfathering.

Van Westendorp is a survey method using four price-sensitivity questions (too expensive, too cheap, expensive but acceptable, bargain) to identify an acceptable price range. Plotting cumulative distributions reveals the optimal price point and the acceptable range between marginal cheapness and expensiveness.

Freemium works when the product has network effects, low marginal cost per free user, and clear upgrade triggers. Free trials fit products needing time to demonstrate value, higher price points, or B2B buying committees; 7-14 days suits simple products and 14-30 days suits complex ones.

Often not, if prices are locked in images, rendered only by JavaScript, or hidden behind Contact us forms. Run the paste test by giving the URL to a browsing-capable AI and asking for plans and prices; fixes include text-based prices and Product/Offer structured data.