Ask HN: How to test price variations?
We have a product with a setup fee and a monthly fee (currently $399 + $20/mo).
I'd like to do some testing of variations on the setup price. What's the best way to do this? It seems unwise to simply randomly show different prices A/B style.
- Should we try a higher price for a time period, then a lower price for a time period? Or vice-versa?
- What's a good time period to test? 2 weeks? 1 month? 2 months?
- Other ideas for testing price changes?
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2 comments
| 4 points
| on HN
)
1) Your early adopters/ customers will feel like they got a deal. (if you drop the price later they'll feel ripped off) 2) You will get a "baseline" for adoption at a price point, and you can use that for comparison as you increase your price. If your sales decrease significantly, you've hit a value perception/ pricing problem.
We've seen our Vendors successfully test their pricing models this way at Simplified Ecommerce (I'm the Founder)- they can start billing from day one without any coding and easily revise their pricing models in realtime.
I can't confirm this technique (is it?) myself, but I'm in process of publishing something for money and will have to figure this out soon enough too.
Good luck