This is one of the best (and easiest to read) articles on pricing I've ever come across. No formulas, no complexities explaining A/B tests and other scientific research, just a story of a guy who made some software and heavily underpriced it.<p>I also found the link to indie theatre incredibly interesting as well.
Excellent article, but I think it's important to point out that in both his examples (his own sales and the theater) the products/shows are being compared to products/shows that are vastly more expensive. Even after raising his price, qlab sounds pretty cheap next to other similar programs prices at $1000+. Even if the theater tripled their prices, they'd be pretty cheap compared to broadway.<p>If the standard price for an audio suite like his was $50, I bet the increase in price to $249 would not have been as warmly received (to put it mildly). I don't think this works if your product isn't comparable to some other product that costs an awful lot more than what your charging.
I like that the title of his post reinforces his point, using "2 bucks" instead of the common "2 cents." It suggests that this information is worth more than a typical opinion (and given the detail and outcome of the post I think he's right).
(I submitted this story.)<p>I would really like to see Chris Ashworth interviewed on Mixergy. I think he's got a great story on niche marketing, problem solving, and pushing things forward.<p>(Edited for grammar.)
If you're doing SaaS and discovering your price is too low, do you raise your price grandfather in your current users for a certain period of time?<p>Conversely, if your price is too high, do you lower your price give your current paying users freebies (an extra month or two) for paying at the higher price?<p>I know at the very least I'd want to avoid another ZenDesk situation (<a href="http://news.ycombinator.com/item?id=1357592" rel="nofollow">http://news.ycombinator.com/item?id=1357592</a>); having happy customers seems very important. Obviously there's a certain point where one needs to cut bait, though.
Remarkably well-written. Wordy, yes, but entertaining, and insightful.<p>I'm inclined to agree with his points; and, I wonder how it relates to free (libre) software. Maybe not at all, but it would be really fulfilling to have that kind of user.
Great article. I think the importance of starting with a low price point to generate a customer following remains key in this story however. So raise your price but don't expect all customer groups to react like the Qlab ones did!
Like my co-founder said, "if you price it too low, customers would think it is worthless." However, this is totally different from the micro-pricing ecosystem so don't get me wrong.