Next time you're at a gas station or a convenience store, and you're ready to pay, look at all the things they shove in front of you, hoping to sell you yet another high-margin product: sugary snacks, soft drinks, processed foods, lottery tickets. They call this the "impulse sales zone:" every single item is a … Continue reading The Forever Transaction
Category: Pricing
Purchasing Power Parity Pricing
Let's talk about burgers and why they matter for how much you can sell as a digital creator. A Big Mac in the United States costs around $5. You'd have to pay ¥20 for the same burger in China. But the exchange rate between the Dollar and the Yuen is not 1 to 4; it's … Continue reading Purchasing Power Parity Pricing
Make it Easy to Cancel
It is a great retention strategy to make it easy for your customers to cancel your product. You may lose a few payments, but you gain something much more important: an ex-customer who feels respected. I see way too many founders paying way too little attention to the last interaction with their customers. They're missing … Continue reading Make it Easy to Cancel
Lifetime Deals and SaaS Businesses
If there is one polarizing topic in the bootstrapped SaaS space, it's running lifetime deals for a subscription business. Founders either love the idea of offering a one-time-payment for "forever access," or they hate it. It's right up there with the question, "should you take venture capital funding?" — an equally divisive topic. Michael Aubry … Continue reading Lifetime Deals and SaaS Businesses
How I Approach Pricing for a Brand New SaaS
It's "pricing week" for my SaaS permanent.link. A few weeks ago, when I made the product public, it had only one price. I had pretty much guessed a random number to start with, and I landed on $25 per month. In the weeks after, I had many conversations with prospective customers. It was clear that … Continue reading How I Approach Pricing for a Brand New SaaS
Seller Beware: Pricing Models That Can Break Your Business
There are a lot of great ideas when it comes to optimizing your pricing to attract more customers or keep them retained. Two pricing models can be hazardous if not implemented carefully: freemium accounts and lifetime accounts. The Risks of Freemium Accounts A freemium pricing model can be great to get people to use your product, integrating … Continue reading Seller Beware: Pricing Models That Can Break Your Business
Not All Subscriptions Are Equal: Offer Yearly Plans from the Start
Most bootstrapped businesses offer monthly subscription plans. The revenue that is generated from your customers that way is incredibly reliable. If you know how many customers you have, you know exactly how much money will come in this month, next month, and the future, provided you keep your customers or replace the ones that quit … Continue reading Not All Subscriptions Are Equal: Offer Yearly Plans from the Start
Not All Subscribers Are Equal: How to Deal with Plans That No Longer Work
You may have started with subscription plans that turn out to be problematic. At FeedbackPanda, we had started with a $5/month plan. After a few months of offering that, we sunset that plan because we noticed that it attracted a kind of customer we did not want to serve: bargain shoppers. The customers on that … Continue reading Not All Subscribers Are Equal: How to Deal with Plans That No Longer Work
Price Is Not Set In Stone: Strategies For Increasing Your Revenue
It’s important to understand that you can always change your prices. You own your business, and you can change everything about it. Most payment providers allow you to have an infinite number of plans, and you can add (and remove) as many as you like at any given time. There is no reason to stick … Continue reading Price Is Not Set In Stone: Strategies For Increasing Your Revenue
Your Initial Pricing Will Never Be Right, But Try Anyway
When you're just starting, finding the right pricing model for your young business seems very hard and almost entirely arbitrary. That's because, at such an early stage of your business, it is impossible to find the "correct" price for several reasons. At the beginning of your business, revenue serves one purpose before any other: validation. … Continue reading Your Initial Pricing Will Never Be Right, But Try Anyway
