Pricing
How to choose, structure and change prices.
Tech Entrepreneur
MVP
Ship the smallest thing someone will use or pay for, and set up the company properly.
Core: start here
- Value-Based PricingPricing from the value the customer gets, not from your costs.
4 more mvp concepts
- Cost-Plus PricingAdding a margin on top of your costs, and why software rarely prices this way.
- Pricing TiersGood-better-best plans that serve different customers at different prices.
- Free TrialFull access for a limited time, compared with a freemium tier.
- Pricing PageThe page that explains your plans, and the common ways it confuses buyers.
Product-Market Fit
Get users who stay, pay and tell others; raise your first real round.
- Annual vs Monthly BillingTrading a discount for cash up front and lower churn.
- Price AnchoringShowing a higher reference price so the plan you want to sell looks reasonable.
- Seat-Based PricingCharging per user, the classic SaaS model, and when it stops fitting.
- Usage-Based PricingCharging for what customers consume, such as API calls, storage or transactions.
Growth
Make acquisition and revenue repeatable; hire, raise and build a board.
- DiscountingWhen discounts help close deals and when they train customers to wait.
- Enterprise PricingCustom, "contact sales" pricing for large customers with large needs.
- Raising PricesIncreasing prices for new and existing customers without losing trust.
- Regional PricingDifferent prices per country to match local purchasing power and competition.