Re:How much to charge for your Web App?
by jules on Sunday January 10, 2010 @10:26AM
(#1043160)
How did you communicate the price increase to your customers? Do you think it's better to start with a price you consider high and then lower it if you don't get enough customers, or start with a low price and increase it?
[ Parent
| on HN ]
We changed the price for new signups and put a prominent message on the homepage for logged in member in the 'old' situation.
Changing prices is always tricky, the above story tells you that my judgment on this subject is as faulty as can be so you probably should take my advice with a grain of salt (or a pound).
If I were to do something like this again I would do a 7 day a/b test and see how the signup rate is affected before taking the plunge. Even that is not simple to pull off because it would mean somehow isolating users from the two groups from each other long enough that you wouldn't influence the outcome of the test.
The big lesson for me from all this is that price elasticity is a non-linear entity.