How did you decide the first launch price of your new product?
by•
To decide the price of a product at launch, I use market survey of potential buyers -- not just one or two people but a decent group size. Of course, I do a good market research too before the survey. However, getting a good group size is quite difficult and tedious.
I have heard that people use some other innovative approaches too.
What approach have you used?
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My launch price comes from three quick signals. 1) A 30-day ROI napkin math from user interviews. 2) A three-tier page with soft checkout to see which tier gets intent. 3) Five founder calls where I quote the number with a straight face and wait in silence.
@elenamira Good one! We launched in public few days back and incidentally, one buyer just mentioned that you are charging less for the value you are offering :) Also, the highest tier seems to have best traction.
Cal ID
I started with two things – a quick sanity check on what’s already out there (both direct and indirect competitors), then ran a simple experiment: asked a bunch of early users for the “yes, I’ll pay” and “ouch, that’s kinda steep” moments while showing different prices in the cold checkout. Ended up picking the sweet spot where folks nodded but didn’t flinch. First few weeks are always tweakable anyways, your price tag is just another feature you’re beta testing.
Hi, in my case, when there are competitors, pricing is usually determined based on how well we can differentiate our product and what advantages it offers.
In areas where there are no competitors, we work backwards from the question of how much benefit the customer would gain by adopting the product.
That said, we haven’t yet arrived at a definitive method — pricing is always a long journey...
IXORD
I think the basic approach is to first analyze competitors’ prices, and then base decisions on that to determine the product’s price. But if the product isn’t on the market yet, then I believe your option of conducting surveys with focus groups is effective
@ixord Thanks. Agree with that!