Re:Ask HN: How to test price variations?
by colin8chSE on Friday September 16, 2011 @02:19PM
(#3005609)
I recommend trying a lower price first, then gradually increase.
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.
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.