How do you test your pricing with customers?

One thing I’ve found useful in soliciting pricing ideas from customer is to provide anchor prices - a high anchor price that is analogous to a current solution the customer is paying for. This is to determine the ‘premium price’. - a low anchor price that also analogous to current pricing for a mass market solution and - a price that covers the cost we’ve invited to produce the solution. Eventual price considerations tend to fall somewhere in the middle as pricing is never perfect.

Pricing can be quite the puzzle 🧩 Finding that zone – not too high, not too low – is crucial. Here are some quick tips: 1. Check out your competitors' prices to get a sense of the market. 2. Make sure your pricing covers costs and leaves room for profit. 3. Segment your customers. 4. Test the waters with A/B testing and gather feedback. 5. Don't forget to ask your customers directly for their thoughts and how much they spend on the service today whether it be time or not. 6. Focus on the value you're delivering – it might justify a higher price. 7. Consider pilot programs to gather real-world data. 8. Be ready to adjust trial periods and website messaging as needed based on feedback and market changes.

I disagree with this advise. Directly asking for how much people are willing to pay is a very bad idea. Do you really think you get useful insight by asking: “I have a new mobile phone to sell. Would you prefer to pay 100, 500 or 1500 units of currency for it? “ Interviews and surveys can be useful for pricing, but you need to be smarter than simply asking directly what you want to know. Once more action (of the customers) speaks louder than words

Developing multiple versions of your landing page, each featuring different pricing structures or offers along with running targeted advertising campaigns driving traffic to these variations, and use A/B testing to analyze which combination of landing page and ad content yields the highest conversion rates and engagement.

This is a great way to test when you have polished the idea and understand how much you want and should charge. Testing these two prices is a good way to start. What you should charge is the minimum price that makes the whole endeavor viable, while what you want to charge is what turns this into a really profitable venture. Finding the sweet spot within this bracket is what you can effectively do through A/B/C tests.

Landing pages and ads are effective for testing your pricing strategy with customers. Here's how to utilize them: 1. Create Targeted Landing Pages: Design landing pages for each pricing model. Use tools like Unbounce or Wix for easy setup. Each page should clearly present a different pricing option. 2. Run A/B Testing with Ads: Use digital ads to direct traffic to these landing pages. Platforms like Google Ads or Facebook Ads allow for targeted campaigns. Monitor which pricing option attracts more interest. 3. Track Conversions: Analyze which pricing option leads to higher conversion rates. Tools like Google Analytics can track user behavior on your landing pages. 4. Gather Feedback: Include a feedback mechanism on your landing pages.

Using landing pages and ads to test pricing is a scalable way to reach a larger, diverse audience. Here’s how to do it effectively: - Measure conversion, bounce, and click-through rates to gauge customer response. - Use tools like Google Optimize or Unbounce for A/B and multivariate tests. - Address challenges: customers may need more information or trust before buying. - Balance costs and resources with your goals. How do you optimize your pricing strategy? Share your insights below!

I suggest you create a social media ad campaign with the price in the AD, don't make it small so people can't see it, make it big so it can be seen and if you are not at the point of selling it make the call to action button SHOP NOW and take them to a waiting list that way you can analyze how many people click on it after seeing the price and you will also have a waiting list of customers

Whatever you use as a pilot, make sure you always ask for money. Your real potential customers are those who say "yes" with their wallets, putting their money where their mouth is. It could be a small deposit or even a symbolic $1 to "confirm interest".

I'd start high and move down in most instances given that its harder to go up than down and first customers are typically those which are in the greatest need. There also need not be a one price fits all strategy - different combinations, bundles or an ala carte strategy that aligns with the value creation without being confusing to the end customer might be the way to go. But as they old saying goes, you never know till you try!

It’s an iterative process in my experience. Price should be prototyped and experimented with just like the product itself. Pick a value or range and see what your ideal customers are more comfortable with.

I'm not a fan of having multiple prices, even in the startup phase. In B2B, it can cause issues because clients compare notes and move jobs; in B2C, it can cause customers to become angry when they find they are being charged more than others. My advice in B2C for products is start low, make a margin still, monitor offtake and then increase prices gradually. In B2B the freemium model works well for software and then allow people to pick options from menus to suit their requirements. In B2B for products your first price is KEY, all price increases come from that, and it is often hard to increase prices. Therefore I advise businesses to adopt proper value-based pricing using the additional features you have vs. your competitors as your mark.

Conducting experiments and pilots is a practical way to test your pricing with customers. Here's a strategy: 1. Pilot Programs: Start small by introducing your product or service to a limited audience at varied price points. This controlled environment allows you to gauge reaction and gather feedback. 2. A/B Testing: Implement A/B testing in your pilot. Offer two versions of your product at different prices and monitor which performs better in terms of sales and customer satisfaction. 3. Analyze Results: Use tools like Mixpanel or Google Analytics to analyze customer behavior and feedback. Look for patterns in purchasing decisions and feedback related to different pricing strategies.

-It's easy to lower price, but very difficult to raise prices. -If you are selling something that you want to be considered high end / premium, avoid coupons, discounts, etc. -If you offer non-stop discounts, your customers will not value them, and will see your discounted price as the actual price

Continue raising your prices until you've hit a quality close rate (not too high). It's different for every industry, but if you are told yes by 100 people for a $100 product, you may just have easily have been told yes by 10 people for a $1,000 product. The end monetary result may be the same, however you build a completely different company based on the pricing mechanism. By testing various prices and interpreting your close rates, you can find the sweet spot of what the market prices your product or service at.

Pricing is always a tricky subject that founders tend to overthink, here is what works for me and other founders I have mentored. 1) Find your three closest competitors, look at their pricing and average it out. This tends ti give you a pricing that’s up to market expectations. 2) Charge as much as you can. Pricing plays a psychological role in the perception of value of the product, there are studies that back up this notion. Charge as much as you feel comfortable charging and OF COURSE deliver with the value of your product. 3) Don’t underprice your product, this is bad for business and sends the wrong message, if is not ready consider communicating temporary promotions as you get your product to market standards

Here's something worth considering: Would you prefer winning a deal while leaving money on the table or losing a deal only on price? But wait, what if there's a third option to explore?! In my experience, building a strong rapport with the buyer and understanding their budget often uncovers a pricing sweet spot. To me it’s not (usually) about charging the highest price; it's about finding the right balance where both parties feel satisfied and fairly treated. So, instead of choosing between leaving money or losing the deal, aim for a mutually beneficial agreement that ensures fair value for everyone involved.