How to Price Your Product (So It Sells Lots)

How your startup can beat the odds this year

There will always be challenging times. But having knowledge, awareness, and taking action will keep you ahead of the game. 

After all, adapting is what entrepreneurship is all about.

Author and entrepreneur Jan Cavelle shares her thoughts on the challenges for 2024 and how to turn them into positive opportunities for your startup. 

• Funding and cash challenges — Funding is harder than it was and is likely to get more so. But access to investors is better than ever. Funding is not impossible; it just takes more work now. Embrace it. 

• Red tape and regulations challenges — Most entrepreneurs are big-picture people and find regulations challenging. But, they present opportunities for new hires, vertical integration, and, if you have the expert knowledge, new companies. 

• Tech challenges — Tech always changes, and something new always takes over (looking at you, A.I.). But, if you act smart and implement what improves your business, tech can be a tool for forward progress. 

• Marketing challenges — There are more than 150 million startups across the globe, so it is easy to see that some markets are becoming slightly saturated. To stand out, why not revisit your brand identity or move with initiatives like sustainability? 

• Talent-related challenges — In 2024, culture will be more important than ever. People want development, learning, work-life balance, and mental health support. So give them it! With redundancies abound, great talent is out there. 

• Supply chain challenges — Raw material shortages, hugely inflated costs, unstable political situations, and natural disasters continuing to de-rail supplies. Use this time to analyze your supply chain, overhaul processes, and cut costs where needed. 

• Global conditions — Not surprisingly, current economic conditions are uncertain and can impact your business. Stay informed, and to counterbalance the scary stuff, take care of your (and your team’s) mental health. 

Most of all, as the tough times have set in to stay, business basics are back in force.

👉️ Deep dive into how your startup can beat the odds this year. 

How to price your offering so it sells (lots)

Your pricing page matters — a lot. It’s like your virtual storefront; it can make or break deals. 

Founder coach Justin Ferriman offers some proven, practical strategies for optimizing your product’s pricing so that you, too, can realize top-dollar for your product.

1. Use clear and transparent tier structures — Your potential customers should be able to grasp the value they’ll receive at each tier instantly. Keep it simple, straightforward, and free from unnecessary jargon to make the decision-making process a no-brainer.

2. The power of anchoring — Individuals rely heavily on the first piece of information they encounter when making decisions. In pricing, this means strategically positioning a dominant pricing option to influence user choices.

3. Personalize pricing with dynamic models — Pricing is not “one size fits all” but is uniquely applied to each customer’s situation. Dynamic pricing allows software companies to create personalized user experiences by tailoring pricing to individual behaviors and preferences.

4. Boost user confidence with satisfaction guarantees — Satisfaction guarantees tap into the psychology of risk aversion. When users contemplate a purchase, they often fear making the wrong choice. Money-back guarantees provide a safety net, assuring users that they have an exit strategy. 

5. Enhance value proposition with strategic bundles — Bundling amplifies your value proposition. Users perceive bundled offerings as more valuable, encouraging them to opt for higher-tier plans. It also simplifies the decision-making process, as users can access a comprehensive solution with a single purchase.

6. Use social proof for pricing influence — Showcasing how your software has positively impacted others can reinforce the value proposition and encourage users to choose a pricing tier.

7. Optimize the checkout experience — Complex or cumbersome checkouts can lead to cart abandonment and lost sales. Avoid common pitfalls like excessive form fields, unclear navigation, unexpected fees, too many toggles, and multi-step checkout fields.

👉️ Read on for more in-depth tactics on pricing strategies that work.

Little Links

🐝 Sign up to Beehiiv - the best place to build a newsletter in 2023.

📺 Subscribe to us on YouTube.

📖 Check 8 years of our content on Medium.