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."
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In my view, value or perceived value is where it gets to finally.
Numbers / calculations that demonstrate clear dollar value - works the best.
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@manu_goel2 so, at that point, do you have any pricing on your page or rather have some formula where you can quote a price?
I stopped offering discounts. In the initial days of my B2B SaaS, I offered our SaaS at discounted subscription prices.
They were early adopters, our SaaS had very limited features and I think lowering the price was justified.
Turns out that the ones who received the discount have all sorts of issues:-
They demand more features
They've more support requests than the ones on mid or top-tier plans
They have lower patience
I politely inform our customers that we don't offer discounts. We do lose business - but that's okay I guess. It keeps my focus on serving the existing customers better.
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@kaustubhkatdare Yeah – high pricing filters users :D if something costs 1 cent, everyone can afford it – aka more people with weird suggestions :D
@busmark_w_nika - There's no point in selling for higher price point. The key is to finding the right customers who will pay the high price; but in return derive even higher value.
Product Marketer here. I handled a pricing project one time where we looked at cost, competitors, customer usage, and feedback from sales calls. The main problem was how we were communicating value and framing it, especially on our pricing page.
We tested a few things: tied pricing to usage, used mystery shoppers to benchmark competitors’ value and positioning, and introduced an à la carte option for more flexibility. Funny enough, the à la carte model isn’t our most popular. Turns out most customers prefer simple, all-in packages with clear value upfront.
Biggest lesson? Price is as much about perception as it is about numbers. If your messaging doesn’t back it up, even a fair price can feel too high.
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@oluchi_njoku Hey Oluchi, that is interesting. One more question: How do you communicate increasing prices?
Atlas
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@oluchi_njoku @laura_cruickshanks I have seen such pricing in services like setting up a US company for foreign people. E.g. something similar to Clemta.
Great question — pricing is one of the most strategic yet overlooked decisions.
For our product, we combined classic principles (cost, competition, target group) with a heavy focus on perceived value. Especially in B2B, people pay for outcomes, not just features.
We also designed pricing tiers around natural value milestones, so customers “graduate” as they grow. It’s less about discounts, more about clarity and alignment with their success.
On promotions? I’m cautious. Strategic offers (early adopters, annual billing) are fine — but constant discounts attract the wrong crowd and devalue your work.
In short: price confidently, package smartly, discount rarely.
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@harsh419 What prices do you offer? Can you share the pricing site?
@busmark_w_nika Sure, we're offering 2 plans -- Monthly at $9 and Lifetime at $49.99
Atlas
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@harsh419 @laura_cruickshanks This is a good question.
I once read something like "if no one complains about your prices being too high, your prices are probably too low"
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@armutyus I have heard it from one YouTube as well. Actually, her videos were inspiration for this post :)
Great topic! I still find the 4P’s (Product, Price, Place, Promotion) super helpful when thinking about pricing.
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@hamza_afzal_butt Spotted a marketer here :) The very first lesson we were given at uni. :)
@busmark_w_nika yesss 🙌🏽, after seeing this I just remember my lesson 😂
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@hamza_afzal_butt Good lessons never get old. LOL :D
Atlas
Following 👀
I'd like to know how long people spend on researching the competition. 😇
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@laura_cruickshanks I would do it regularly at least once per month to see how they play the game :D
I would say that for each product the criteria's list will be absolutely different.. And first of all, it's depends on your positioning on the market.
Are you unique with your features? Then go ahead and make the extra profit. Are you trying to compete with someone? Then your first object is to revise your competitors pricing policy.
As for discounts, there are some areas (many SaaS solutions) where you should include your discounts in your strategy of retention and acquisition. No pain of making the discounts, it could be also your strategy to cut the bigger market pie!)
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@monolgaz Pushing the price down to "get rid of other players" in the market and then create a monopoly - that makes sense. But I think the states with their legislation would quickly thwart this attempt.
TinyCommand
This is such a nuanced question. Pricing isn’t just about numbers it’s a mix of psychology, positioning, and timing. I’ve always leaned toward value-based pricing, but what helped most was talking directly to potential users and hearing what they’d actually pay not what they say they would.
On discounts: I’ve learned to use them very selectively. Not because of the “devalues your work” mindset, but because the kind of user it attracts really matters. A small, thoughtful nudge (like for early supporters or community referrals) has worked better for me than broad markdowns.
Still figuring it out as I go pricing always feels more like testing than theory in action.
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@priyanka_gosai1 OK, so discounts only for loyal people?
Starting with a small group of 10-20 founders testing their websites is a smart approach—it allows for focused feedback and quick iterations. Reaching out on targeted subreddits can definitely help find early users who face the exact problem you're solving.
By the way, if you’re creating printed materials or user guides alongside your app, I recommend mytoner.co.nz for reliable and affordable printer ink in New Zealand. Quality print can make a strong impression!