Pricing Strategy and Perceived Product Value
Press Space to continue
the biggest BS in saas: “don’t raise your prices” 90% of the time, low prices hurt early saas - not help a $9 price tag tells users: “this is probably a weekend project” a $49 price says: “this is a tool built for serious operators” and that one shift changes everything - the users you attract, the feedback you get, and the way people talk about you saw this article recently - the founder doubled their price from $4.99 to $9.99 now on paper that looks risky but in reality, their churn dropped to 3% and remember - the product didn’t change, only the perceived value did bootstrapped founders often think in terms of loss: “what happens if I scare people away?” but fearing losses usually blocks bigger wins we did the same thing with Tweet Hunter. we raised the price from $9 → $49 (over 12 months, while adding tons of stuff) churn went DOWN revenue went UP conversion rate didn't move remember this: - low prices force you to think "cheap" - high prices force you to build "high quality" go premium, and show that to the world