How do you handle pricing strategies and discounts?
When I was studying economics, we always said that we base the price on these basic things:
– cost level
– competition
– prominence of the industry/product
– target group
I would be interested to know:
How do you determine the price for your product, and whether you created anything interesting in your pricing model (e.g. packaging, etc)?
+ What is your opinion on promotions?
I heard a rather interesting thought: "The one who wants a discount on your product probably doesn't value your work."
363 views
Replies
Not looking to hijack the conversation, but felt this might add to the discussion:
What are your thoughts on yearly-only pricing with NO monthly option?
My product is an AI business coach, and real business transformation takes time. If someone only commits for a month or two, they won't see results and will churn thinking it doesn't work.
We offer part of the system free so they can test functionality first, and we don't have many monthly alternatives in our space anyway.
My thinking: Yearly-only means better customer success (they stick around long enough to see results), lower churn, and attracts customers who are serious about change.
My worry: Losing potential customers who want the monthly option.
Has anyone successfully gone yearly-only? How did customers react?
On your discount point - I think people like getting discounts, and if they do, why not show it to them as savings and make them feel good about it? You're still setting your price where you want it. With online software, it's not like they call you up and haggle like it's a car dealership.
minimalist phone: creating folders
@rohulp For me, yearly pricing would not be convenient at first. When I tried the X subscription at the beginning, I wanted to see what features it offers and whether I like it. After one month, I switched to yearly because I liked it and decided to use it for another year. So ONLY yearly pricing wouldn't be attractive for me (personally).
@busmark_w_nika Thank you for the feedback.
Haimeta
Great points! Pricing strategies are crucial, and it’s great your team is focusing on this.
Key considerations include:
costs (factoring in hidden ones like salaries and rent)
positioning (who you are, competitors, and value proposition)
market strategy (entry approach and timing for price adjustments).
minimalist phone: creating folders
@gin_6078 How did you price your product/service, if you have any? :) If you changed something in pricing, what was the reason?
Paraflow
To determine a price, I consider factors like production costs, competition, target audience, and market trends. I prefer value-based pricing, where the focus is on the product's unique benefits. As for promotions, I believe they're useful when aligned with brand value but shouldn’t compromise perceived quality. That's a quite interesting topic that inspires a lot.
minimalist phone: creating folders
@pulin_yuuu "I prefer value-based pricing" – does it mean that you have only a contact form/request demo form on your website and handle the price separately in private for each customer?
minimalist phone: creating folders
@arthen_factory I have also heard that it depends on the nature of humans and nationality. E.g. I am that kind of person trying to find whether I can have it at more affordable price :D