How do you price an early stage Product? Assuming you're not as great as the competitor yet.

Yash
13 replies
Should you worry about the profit margins? Or should you worry about the adoption of the product?

Replies

Karthik Tatikonda
You can try and test different pricing models. We've started giving our tools at a lesser price, then doubled it after the user reception. Later, we introduced addons to increase our order value.
Karthik Tatikonda
@yashthakker Pur product is LTD. So we haven't increased prices for the exisiting customers..
Yash
Olly - Your AI Social Media Co-Pilot
Olly - Your AI Social Media Co-Pilot
@karthik_tatikonda Makes sense, thanks for sharing this. Did you see pushback from some of the early adopters?
Rich Watson
NVSTly: Social Investing
NVSTly: Social Investing
we did 50% or more of most competitors. figured can always increase prices later if need to, and early adopters would keep their price plan
Yash
Olly - Your AI Social Media Co-Pilot
Olly - Your AI Social Media Co-Pilot
@richw Thanks this helps
Adam Říha
I think it depends a lot on the market you're targeting. If it's focused on a slim audience I'd focus on margin. 🔀 If not, I'll aim for rapid user adoption. Anyway, prices can always be adjusted on the fly.
Yash
Olly - Your AI Social Media Co-Pilot
Olly - Your AI Social Media Co-Pilot
@adamriha Got it, thanks!
Krishna Kumar
Initially, you should not worry too much about profit margins, but that does not mean that you should take a loss, unless you have deep pockets
Yash
Olly - Your AI Social Media Co-Pilot
Olly - Your AI Social Media Co-Pilot
@kkumarkg Makes sense, so keep those early adopters at the same acquisition price point and slowly pivot them to a more value driven pricing plan. Thanks!
Yassin Bouacherine
@kkumarkg @yashthakker I think you shouldn't worry about this too much, early adopters are meant to launch your product. Just price is based on the cost to run the app + what's required for you to continue improving your app + what puts food on your table if it's your only source of revenue. For the next version, you can higher up the price since it gained value in terms of service/features, etc. That's my vision for early-stage pricing.
Rhea Reanoga
@yashthakker Give at least 50% off of the competitor as long as you're confident your product is better than them. Try posting this question to wizly.app, they give great advices and tips for this. Feel free to reach me out on LinkedIn for further help on this!