My price experiment was a failure

A couple of weeks ago, I increased KTool's price. It was a failure. Since then, sales are flatlining...

Here is what I learned:

1/ What happened?

As KTool got more features and bug fixes, I decided to increase the LTD price like others suggested.

I got a sale after that ??

Then he churned ??

Since then, sales are flatlining...

No alt text provided for this image

2/ Finding out why

I reached out to learn more about his decision but never got a detail responses other than "product not working as intended"

My guess was that he was looking for newsletter & RSS features, which were not ready yet.

3/ Survey customers for Willingness To Pay (WTP)

Following that train of thought, I asked my current customers to find an optimal price.

This was for current features of KTool (not including RSS/Newsletters support).

The questions were pretty straighforward:

No alt text provided for this image

The consensus (so far):

  • $10/mo: too expensive
  • $8/mo: expensive/high side
  • $1-$3/mo: cheap/good value
  • $0-$1/mo: too cheap

No alt text provided for this image

4/ My takeaways

?? I priced too high. With current feature set, $4.9/mo is OK, but $8.9/mo is too expensive

?? Beta LTDs seem to only work for first set of feature, at sub $50

5/ My action plan:

?? I decreased the LTD price to $69 (nice )

?? I'm gradually moving to a subscription model

?? Started working on Newsletter & RSS features

?? Continue to survey customers for WTP

That's a wrap!

If you enjoyed this article, follow me for more of these learnings ??

Asad Ur Rehman

WordPress Plugin Developer | SaaS Applications Developer | Helping SaaS Companies Build Excellent Products

2 年

Thank you for this great article. Pricing a tool is really tough and WTP can help a lot in this. we are in the final stages of the MVP development of our SaaS (employee management tool) and I am working on how to price our tool. may I ask what percent of users you have on free, premium, and platinum plans? what percentage of the premium plan users are on the annual plan? what percentage of the platinum plan users are on the annual plan? what's your churn rate for the last 3 months after reducing the price to 4.99 (i.e after WTP)? is there any significant difference in the churn rate of the monthly and annual plans or premium and platinum packages?

回复
Amer Sikira

I help you grow your startup with a result-driven website

2 年

This is pretty interesting. I’ll have this in mind for my future projects. IMO your pricing, increased one, was more than fair but you lack some features. I believe once you sort out thise features 8.99$ will be a bargain. ??

回复
Daniel Nguyen

Founder BoltAI.com. Also built PDFPals.com, ShotSolve.com and KTool.io

2 年

Good news! My price change yesterday seems to take effects immediately. Sales are picking up, baby ??

  • 该图片无替代文字

要查看或添加评论,请登录

社区洞察

其他会员也浏览了