How to nail your first pricing page

Written by

Laura Bosco

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Your first pricing page

Last week's newsletter showed you how to think through initial price points. Your next step is figuring out how to arrange those numbers on a pricing page.

We recommend starting simple. Things like discounts, big feature comparisons, and other stuff can factor into your presentation. But in the beginning, those add unnecessary complexity. Complexity makes it hard to know what's working. Worse, it scares away sales. 😱

Instead, focus on helping your customer. Be clear and concise with your 1️⃣Pricing, 2️⃣Packaging, and 3️⃣Positioning. These are your three opportunities to stay streamlined on your first pricing page.

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See last week's newsletter for pricing guidance. Packaging and positioning are below! 👇

Find your customer value metric (packaging)

Packaging refers to how you arrange value at each price point. The heart of packaging is a customer value metric (CVM). This is the main thing the customer receives for their cash.

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For MailChimp, the CVM is the number of subscribers a customer can email. For Slack, it's active users. For Dropbox, it's an amount of space. A good CVM for your product will meet four criteria:

Identify customer segments (positioning)

Positioning, in this context, refers to groups of customers you're targeting. For example, Individual, Small Business, and Enterprise -

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For your first pricing page, keep things simple with 1-3 customer segments. Survey or interview data could tell you what these are. Or, competitors, market experience and personas may give you starting points. Other tips:

Give your future self a hand

As your business grows, your pricing will too. You should revisit it every 6 months - in fact, go ahead and put a recurring meeting on your calendar. 📅 Add these four questions to the meeting description:

Answer these questions every pricing meeting. Of course, you'll need customer feedback to do that. That's where your current self can give your future self a hand. 👋Below are some ways to gather customer feedback, year round:

There are many other options as well. Be creative! And to get the clearest picture, gather multiple types of feedback.

Stay focused

Beyond pricing, packaging, and positioning, there are a lot of things you can micro-test. You can end prices in a 9, set up decoys, offer incentives, vary billing frequency, and tweak many other things.

Those can make a difference later on, but they're distractions until you've set the basics. For your first pricing page, make sure you're pitching the right value, to the right groups of people, at price points they're willing to pay. 💯

Once you nail that, revisit and optimize often. Remember, pricing is your biggest growth lever!

                       

"If you picked your price once and never changed it, it’s probably wrong."- Phil Libin, co-founder of Evernote

Want to see us cover a topic? Have major startup questions or sticking points? Email andrew@builtbykrit.com                                                

Laura Bosco is a writer and people person. She helps tech startups do tricky things, like explain who they are and what they're doing. Ping her on Twitter to say hi.