Don’t Blindly Model Your SaaS Pricing on 37signals
Doubling SaaS Revenue By Changing The Pricing Model Most technical founders abominably misprice their SaaS offerings to start out.
Using Behavioral Economics, Psychology, and Neuroeconomics to Maximize Sales
by Joel Spolsky Wednesday, December 15, 2004 You've just released your latest photo-organizing software. Through some mechanism which will be left as an exercise to the reader, you've managed to actually let people know about it. Maybe you have a popular blog or something. Maybe Walt Mossberg wrote a rave review in the Wall Street Journal. Camels and Rubber Duckies
Very entertaining & pedagogic post by Sep 21
Pricing to the demand curve Many college microeconomics courses include the following exercise. The teacher offers the students an imaginary trip to Hawaii, and asks them to write down on notecards how much they are willing to pay for the trip.
scientific way to price b2b software « cdixon posterous
What’s the relationship between price – the ability to charge for your product – and cost – how much it costs you to produce it? Price is a function of supply and demand. Notice the word “cost” doesn’t occur there. It is true that cost is, over the long term, a lower bound for price – otherwise you’d go out of business. It is also true that high upfront fixed costs can create barriers to entry and therefore lower supply. The only case in which price is determined by (variable) costs is in a commoditized market. What’s the relationship between cost and price?
How Perfect Pricing got me 1500 Sales in 2 Days This is a guest post by Sacha Greif – a designer and entrepreneur who recently sold thousands of copies of a self-published eBook that shows how to design a user interface step by step.
Scalable pricing is a powerful tool to grow revenue in a SaaS or software business. It allows you to capture more of the revenue that your customers are willing to pay, without putting off smaller customers that are not able to pay high prices. It also provides a great way to continue to grow revenue from your existing customers. This post looks at how to create scalable pricing using multiple pricing axes, and discusses the different types of axes that can be used.
What We Can Learn About Pricing From Menu Engineers Let’s say that you’re an entrepreneur or general manager about to take a new product to market. How do you price it? Traditional economic theory tells us that the market clearing price is the point at which supply and demand meet, and that consumers always know the utility of any given purchase. So surely pricing your product shouldn’t be that hard, right?