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How to price: Lessons learned from our first attempt

85 pointsby liyanchangover 12 years ago

13 comments

insicknessover 12 years ago
Here's how I priced my product:<p>A few months ago, I was launching an information product I had been working on for a few years. I was trying to decide how to price the product. I was planning to price it anywhere from $17 to $97.<p>In order to come up with pricing, I did some testing before the launch. I put up a sales page that wasn't linked from my main site. The 'Buy Now' didn't work on the page (It sent them to an e-mail sign up page instead).<p>Then I sent a ton of targeted adwords traffic to the sales page. I used Google Website Optimizer to split-test the page with a range of different prices: 17, 27, 37, 47, 67, and 97. Google Website Optimizer allowed me to see how many people clicked 'Buy Now' when they got to one of the pages. What I found surprised me.<p>The highest number were at 17 and 97, and were almost equal in number. The other prices 'sold' less. This to me meant that people were willing to pay 97. (I could have possibly gone higher but didn't want to charge my readers more than that.)<p>So I ended up selling the product for $97. It's been selling pretty well. After the launch, when the product was actually for sale, I did find out that people who click 'Buy Now', don't always buy. In fact sending targeted traffic to the page hardly sold any at all. A certain number would click 'Buy Now', but no one ever bought. Only people who came from my website bought the book.<p>Does this mean that my tests were off? No, I still think it was the best way I could have tested. A few weeks after the launch, without announcing it, I split-tested the real sales page for two weeks with my readers by selling it for 47 and 97. So at random, buyers would see 47 or 97 and could actually buy the product. The product sold almost an equal number at each price.
creativenameover 12 years ago
Sort of meta, but I thought the blog post was really effective at bringing the new pricing to my attention. I had looked at filepicker before, but with the new Free plan not tied to bandwidth I'm really excited to give it a try.<p>Not to mention, the added benefit of the pricing plan as it stands is that I'm literally thinking in my head "I hope I have to pay for this someday soon!"
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pbreitover 12 years ago
This strikes me as SaaS as having gone too far. Are people signing up for it? Isn't some sort of Jquery plugin more appropriate?
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jqueryinover 12 years ago
Just so someone else from your staff hears this, you guys are a bit too in your face with your repeat emails. I'd stop at one and if you don't get a response leave it at that.<p>You're sending messages without an opt out which could get your domain blacklisted in the long run. I'm not saying I minded, but just be wary :)
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ananddassover 12 years ago
Thanks to RideJoy, Fitocracy, Boutine, WeVideo, Vidcaster, and Ridepost for guiding us through the pricing change and offering valuable feedback.
carlsednaouiover 12 years ago
OT: You may want to validate email addresses too during signup (not only password) - this will ensure that visitors can't leave the email field blank by mistake (and will avoid serving them your error page).<p>Great article btw.
DanielRibeiroover 12 years ago
Another very good source on pricing experiments: <a href="http://conversionxl.com/pricing-experiments-you-might-not-know-but-can-learn-from/" rel="nofollow">http://conversionxl.com/pricing-experiments-you-might-not-kn...</a>
mayanksinghalover 12 years ago
Just in case you are not aware already, there are errors on <a href="https://filepicker_static.s3.amazonaws.com/ce7b147/*" rel="nofollow">https://filepicker_static.s3.amazonaws.com/ce7b147/*</a> requests which means missing CSS and bootstrap.js at least for me.
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HyprMusicover 12 years ago
Wait, do I have to provide my own Amazon S3 bucket? Also, do you do any security checks on filetypes - namely content sniffing? That's my biggest concern when it comes to handling files, given IE's use of content sniffing to determine MIME type.
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citricsquidover 12 years ago
Does filepicker support restricting file types and validating file types? For example can I use Filepicker to bypass my own need to validate if a file is an image of a specific type (eg: png) or not?
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adambardover 12 years ago
It was good to see numbers (relative ones anyhow) for your switch from contact-for-quote to standard pricing. Do you have any early insight into your changes in revenue/signups from this new switch?
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neoviveover 12 years ago
Pricing is tough! On one of my websites, still running after 10 years, I still modify prices quite frequently based on market conditions. Their is quite a bit of "art" in pricing.
jdanguover 12 years ago
Your Free plan says: "5,000 files/month $0.005 per file over"<p>Looks more like $25 then, what's the catch? :)
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