Pricing your product the right way!

Pricing your products… where do you begin?

Truth be told there is no one size fits all formula, however, here are some best practices you should engaged in to help you with your discovery:

➡️ Begin with understanding how much value your product brings to customers. Price in a manner where the value vastly outweighs to costs making it a compelling offering which is hard to turn down! Build some case studies with a different customer types to help cement this

➡️ Understand what freemium offering will help them understand the product enough to make a decision.g. free trial, free capacity, usage allowance, limited functionality etc.

➡️ Understand your target market group sizes to help define your tiers e.g. 1–10 users, 10–100 users, 100+ etc. (if you decide pricing by customer size is the right path to go down, if not it’s still super helpful to know)

➡️ Understand the volumes of usage for different features to help determine potential groupings of core vs premium features (use data & user interviews) or maybe you even deem usage to be the suitable way to bill your users e.g. Zapier with their API connectors.

➡️ Do competitor analysis to see how you can position yourself in a way which helps you stand out from the crowd/noise. Offering competitive pricing is one things, however, offering a service package which meets users needs is another. See if you can find the sweet spot to meet both

➡️ Make it convenient for your users to pay! with many fin-tech innovations from the likes of Klarna, Revolut, Apple Pay, PayPal, Google Pay etc. along with monthly vs annual vs no subscription models. Understand your users buying habits & processes. Build around this!

➡️ Experiment with different hypothesis based on the above research to validate which approach converts the best

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