The hottest Pricing Strategy Substack posts right now

And their main takeaways
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For Starters #35: 3.5 Tips for Pricing

For Starters • 39 implied HN points • 18 Oct 24
💼 Business Pricing Strategy Value Proposition Customer Experience Marketing
  1. Pricing should highlight what makes your product special. If customers understand its unique value, they're more likely to use it.
  2. Help your customers see the benefits fast. Make onboarding smooth and ensure they quickly experience the product's value.
  3. Don't worry about making your product perfect before setting a price. Charge based on the value customers see now, not on what you want it to eventually be.

Increasing Prices Without Losing Your Current Clients

Tiny Empires • 24 implied HN points • 05 Feb 25
💼 Business Pricing Strategy Client Management Value Proposition Business Growth
  1. To increase prices without losing clients, focus on adding value first. People are willing to pay more if they see higher value in what you're offering.
  2. Create different service tiers to give clients options. This keeps current clients happy while attracting new ones to higher-priced services.
  3. Shift your conversation from what you deliver to what results your service provides. This way, clients understand the true worth of your services.

The future of AI pricing

The AI Frontier • 259 implied HN points • 15 Aug 24
💼 Business Pricing Strategy AI Tools Market Trends Productivity
  1. AI tools should use work-based pricing instead of seat-based pricing. This means companies pay for the amount of work the AI actually does, not just who has access to it.
  2. Consumption-based pricing isn't new; it's been around in various forms for a long time. Many software services bill customers based on how much they use, which can help companies understand costs better.
  3. Work-based pricing can make customers skeptical because it's hard to measure what 'work done' means. Companies need to show how AI adds value and build trust with users.

Stuff Worth Reading - Sep 2024

clkao@substack • 79 implied HN points • 30 Sep 24
🕹 Technology Software Development Version Control Analytics Pricing Strategy
  1. GitHub succeeded because it created tools that developers really wanted and used. The combination of Git's technical features and GitHub's social features made it very popular.
  2. The analytics and data workflow still lag behind traditional development methods. It's important to find better ways to show the value of data to businesses.
  3. There's a new way to think about pricing that considers what buyers really want, not just traditional methods. This can lead to smarter pricing strategies.

How I Identify Clients From Hell

VERY GOOD PRODUCTIZED GUIDES • 159 implied HN points • 19 Aug 24
💼 Business Client Management Freelancing Pricing Strategy Service Industry Marketing
  1. Choosing clients based on shared values and respect makes work more enjoyable. It's important to list what matters most to you in a client relationship.
  2. Your portfolio should showcase work that you are proud of and leads to future opportunities. Focus on clients who will help enhance your portfolio, rather than just any client.
  3. Pricing should reflect the value of your work and your beliefs. Be firm on your rates, but consider flexibility if a client aligns with your values and can enhance your portfolio.
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🧱 How to Build toward Outcome Based Pricing

Good Better Best • 3 implied HN points • 07 Feb 25
💼 Business Pricing Strategy SaaS Product Management Market Trends Customer Experience
  1. Companies are shifting from seat-based pricing to outcome-based pricing. This means they want to offer more value for what customers pay, instead of just charging per user.
  2. Add-ons and features can help users get more done without changing the whole pricing structure. This lets companies gradually move towards pricing based on results rather than just how many seats a customer has.
  3. Having complex pricing models can be beneficial. They allow businesses to charge different amounts to different customers based on what they need, capturing more value and catering to various market segments.

How relative pricing shapes customer choices

A Bit Gamey • 6 implied HN points • 29 Dec 24
💼 Business Marketing Economics Consumer behavior Pricing Strategy Finance
  1. The value of a product often relies on how it's compared to other options. If you see a bad choice, it can make the others look better.
  2. Using a three-tier pricing model can influence customer decisions. Setting prices close together can nudge people towards the more expensive option.
  3. It's smart to always have a higher-priced option available. Even if it doesn't sell much, it can make lower-priced options appear more attractive.

JTBD-ing churn 🧲

The SaaS Baton • 78 implied HN points • 02 Aug 23
💼 Business Customer Insights Pricing Strategy
  1. Implement switch interviews to understand why customers stop using your product.
  2. Build a partner referral channel from the beginning to drive demand without heavy marketing spending.
  3. Utilize pricing exercises and customer feedback to ensure you are charging appropriately for your product.

Inside Statsig's Pricing Philosophy 📈

Good Better Best • 3 implied HN points • 08 Nov 24
💼 Business Pricing Strategy SaaS Market Competition Customer Acquisition
  1. Statsig has a clear pricing philosophy. They only charge for features that cost them money and create real value for their customers.
  2. Their pricing model uses a mix of free and tiered plans to attract users. This helps users easily test the product and upgrade as they grow.
  3. Statsig keeps their pricing competitive by showing comparisons with other similar tools. This transparency helps potential customers understand their options.

Creating Pricing Power through M&A

Good Better Best • 2 implied HN points • 15 Nov 24
💼 Business Mergers Acquisitions Pricing Strategy SaaS Market Trends
  1. SaaS companies can use acquisitions to improve their products, which lets them raise prices confidently by adding new features.
  2. Acquisitions help expand a company's offerings into a platform, allowing them to bundle products and sell them together more effectively.
  3. By acquiring diverse companies, a SaaS leader can use extreme discounting to win competitive deals, making it easier to attract new customers.

How Intercom Launched Fin AI

Good Better Best • 3 implied HN points • 18 Oct 24
💼 Business SaaS Product Development Pricing Strategy AI Technology
  1. Teasing features before they launch can create excitement. It helps customers know what's coming and encourages the team to work harder.
  2. Doing a soft launch allows a company to gather feedback and make improvements. It's important to stay flexible and adapt based on what you learn.
  3. Having a pricing strategy ready before launching is crucial. It saves time and helps ensure the product is set to succeed right from the start.

Value != Price

Tech Ramblings • 19 implied HN points • 16 Jul 23
💼 Business Pricing Strategy Luxury goods Consumer behavior Market Valuation
  1. Value and price are not the same. People often pay more for brands or status rather than for actual utility.
  2. It's easy to set prices based on user value for certain products, like software, but it’s trickier for physical goods like cars and clothes.
  3. Luxury products have high prices because of the status they carry, not necessarily because they offer more utility compared to cheaper options.

A Guide to Pricing Research, Part I

Good Better Best • 3 implied HN points • 23 Feb 24
💼 Business Pricing Strategy Customer Insights
  1. Start pricing research externally with quantitative surveys, using methodologies like MaxDiff, Conjoint, Van Westendorp, and Gabor Granger to understand customer preferences and price sensitivity.
  2. Consider using survey vendors like Qualtrics, QuestionPro, SawTooth, or Conjointly based on your product, team sophistication, and target market for data collection.
  3. For deeper insights, conduct qualitative interviews to explore nuances and motivations behind pricing decisions, ensuring flexibility, validity, and complementing quantitative efforts.

Financial Management: Final Thoughts

Logos • 0 implied HN points • 22 Aug 20
💼 Business Financial Management Decision-making Automation Industry Analysis Pricing Strategy
  1. Understanding how to grow revenue by adjusting volume, price, or mix is important in any industry. This principle can apply to companies from tech giants like Google to service providers.
  2. It’s crucial for managers to set prices based on the relationship between marginal revenue and cost. This can lead to better profit margins, and companies should explore creative pricing tactics.
  3. Many financial processes should be automated, but employees often don’t push for it due to inertia or lack of skills. To improve efficiency, companies need to encourage streamlining operations and invest in good data.

Financial Management: Volume/Price/Mix

Logos • 0 implied HN points • 13 Jul 20
💼 Business Financial Management Revenue growth Pricing Strategy Market Analysis
  1. You can increase revenue by either selling more products or charging more for each product. Both factors are crucial for business growth.
  2. Revenue changes can result from mix effects, like selling different amounts of higher-priced items. This means even if total sales and prices stay constant, the types of products sold can impact overall revenue.
  3. When analyzing revenue, it's important to break down the effects of volume, price, and mix separately. Understanding these can help businesses make better financial decisions.