RSS

An ongoing discussion of web app pricing strategies by Paul Farnell, founder of Litmus and Hiten Shah, founder of KISSmetrics.

Email Paul
paul@salted.com
Jul
20th
Tue
permalink
Teehan+Lax: Why we are getting rid of our hourly rate
May
19th
Tue
permalink
Why would I charge $2.99 for the app when I could make it free and just have this massive user base?… The app store makes it as easy to buy an app as it is to download an app for free… People already have their credit card hooked up - it’s just magic. $2.99 is an impulse price.
— Loren Brichter speaking at Stanford about his iPhone application, Tweetie
May
15th
Fri
permalink
Day Rates Explained

Andy from Human Traffic just send me this great link regarding agency day rates. Very open and honest of a company to break this down in such detail.
Oct
9th
Thu
permalink

There wasn’t much science behind [the pricing for Basecamp]. We asked ourselves a couple questions:

1. What would we pay?
2. What numbers feel right?

— 37signals
Aug
5th
Tue
permalink
Decoy Marketing

Roger Dooley explains a fascinating pricing phenomenon whereby adding an inferior product at the same price as another can increase sales.
Jul
25th
Fri
permalink
Will Draw Anything

Artist offers to draw anything for $2. I’ve bought one myself just to see how the process works.

Via Dave
permalink
200 Nipples

Interesting model for pricing t-shirts - in a run of 100, the first costs $1, the second $2, etc. (Safe for work)

Via Dave
permalink
Freelancers want to pay less, in general $10-30/month. Small company employees would pay the most: 30% said $70+/month. Large company employees were surprising. Some would pay zero, a result mirrored in no other category.
— Answers about pricing in our recent Litmus survey.
May
16th
Fri
permalink
Spellr.us is a service still in private beta. They have a nice touch on their beta sign up form. In addition to the usual name and email fields, they ask you about your pricing preferences, and how much you’d be willing to pay. 

Spellr.us is a service still in private beta. They have a nice touch on their beta sign up form. In addition to the usual name and email fields, they ask you about your pricing preferences, and how much you’d be willing to pay. 

Apr
20th
Sun
permalink
37signals have changed their Basecamp pricing. They have removed the $12/month plan, simplifying it down to 3 choices, and made the free sign up much more difficult to find. Will be interesting to see if this works better for them - whether they keep it or revert back to the old pricing.

37signals have changed their Basecamp pricing. They have removed the $12/month plan, simplifying it down to 3 choices, and made the free sign up much more difficult to find. Will be interesting to see if this works better for them - whether they keep it or revert back to the old pricing.