Hiten Shah (@hnshah) of Kissmetrics had some great suggestions in relation to an audience question on pricing to his Lean Startup Circle talk (given with Cindy Alvarez @cindyalvarez, and John Butler) last week.
He described three useful strategies to test pricing:
- Set a relatively high price and then send out various discount codes: e.g. 10% off, 20% off, 30% off. Analyze which discounted price point brings you the most value on a cost vs volume basis.
- Split-test landing pages with different prices
- Test a price increase, and if a user buys only charge them the “normal” price. This is useful to prevent any bad feeling that option 2 might cause. (See Amazon’s lessons on this one)
If you’re in the Bay Area, join the group! There was some great advice from Cindy and John in this session, including some great points on what types of questions to ask in a Customer Development Process. Watch the full video, courtesy of David Binetti (@dbinetti) –