Optimizing Your Most Important Page
How to Price Your Product
The power of pricing right. There’s no point in arguing about the potent effect it has on your bottom line. Or your top line. Or any other line that influences the amount of money your startup rakes in.
Hit the pricing “sweet spot,” and Christmas will be much funner for you and your company this year. Get it wrong and, well, you won’t be any different from the millions of other tech casualties who contribute to the 90% startup failure statistic. Yes, pricing is THAT important. Getting your pricing right is not just an exercise in management accounting, it’s the foundation of your overall growth hacking strategy.
Yet, a recent study of the top 270 SaaS pricing pages discovered that only 20% of startups use customer development or a value-based approach to setting their prices. The other 80% use a combination of “scientific” guesstimation and the age-old tactic of aping your competition. Even worse, there are those startups who are still stuck in the industrial revolution, and base their pricing on production costs.
If you publish your pricing, which most SaaS startups do, then your pricing page arguably becomes the most important part of your website. Now let’s inject some science into the “art” of pricing and hack some more revenue through your pricing page.
Just Hack It:
- You can already breathe a sigh of relief because your pricing page doesn’t have to be a visual masterpiece. Simplicity is actually key. The goal is to communicate your value in the most efficient way possible while still keeping things interesting.
- Following are some things that you can do to optimize your pricing page:
- Don’t overwhelm leads with a laundry list of features for each pricing tier and make sure that you’re not repeating yourself. There’s nothing worse than drowning a potential customer in details they don’t need to know.
- But at the same time, communicate enough to ensure that the difference between your various plans is understood as well as the the incremental value that each pricier plan provides.
- Snazzy up the names of your pricing tiers to bring them to life. If you can muster the creative inspiration, try to avoid using the worn-out “Basic-Premium-Enterprise” naming scheme for your pricing tiers.
- Put your pricing into context. A good example of this is mentioning things such as “For the price of a cup of coffee per week” or “For less than a dollar a day” etc.
- Finally, a simple pricing page doesn’t mean that it has to be ugly. A well-designed, yet minimalistic, pricing page will help to enhance the overall perception of your pricing.
- If you can get your hands on a good designer then visually show the differences with the help of illustrations or design metaphors.
- Never underestimate the power of design, even when it comes to pricing!