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David Tedaldi

Pricing a product in a crowded space: any wisdom to share?

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Hi everyone, I'm David, cofounder at morgen.so, we are in the smart calendaring and planners space, one that has quite some players.


Is there anyone who's also in a somewhat crowded space, and has some suggestions on the topic of pricing and packaging? Please share any insight, I'll take care of trying to remap to our case.

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Pasquale JS
Price higher than your competitors
Alaa Moucharrafie

@pasquale_js1, what's the rationale behind that strategy?

I can imagine that, kinda like with wine, price might subconsciously determine quality, but literature on the matter seems undecided, as far as I could see.

Curious to know your thoughts

David Tedaldi

@pasquale_js1 please do share the rational behind this!

Yash Kudesia
it's quite surprising to me that most of the companies opt for experimental pricing to find out their spot. You can either do the same or conduct some pricing studies to understand the willingness to pay of your consumers based on the perceived value and then adjust the pricing that caters to mass segment
David Tedaldi

@yash_kudesia how would you experiment with pricing systematically and quickly? AFAIK, in most countries it's illegal to A/B test prices.

Ilkkan

Hey David!


I'm not an expert, but I'll share my insight as far as I've experienced it:


  • You should have a freemium plan with limitations or a free plan for X days with all features. This will help onboarding new users.

  • Tiered subscription plans. Make your tool available for all budgets with different limitations. You can either cut off some advanced features, or apply limitations where possible.

  • Special discount campaigns to convert your free users into paying ones.

Wish you best!

Eric Lens

Focus on what makes my product different. If I offer something unique don't be afraid to price accordingly.

Alaa Moucharrafie

@eric_lens: If I offer something unique don't be afraid to price accordingly.

Indeed, being the only one that offers X feature gives very big leverage on said crowded market, but how would you determine the price? I liked @yash_kudesia's approach of conducting pricing studies; did you have something different in mind?

Leeann Trang

@david_tedaldi1 Could you share more about what's working, what's not working with the current pricing/packaging morgen.so has so the community can share more helpful feedback?

David Tedaldi

@ph_leeanntrang current pricing seems to be working fine as is, but having tried little to nothing in terms of experiments on pricing it's hard to pinpoint what are the main contributors to what's working fine versus what's not working well.


Maybe, but this is one ancient bit of knowledge, as in, we did this change ~1.5 years ago: we used to have 3 tiers, and we now simplified it to one, and that helped a lot! I guess the problem there was that we tried to layer in value, and we did not find the right way to package the different tiers.