Free AI Product Pricing Strategy Generator
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The Pricing Mistake Most Businesses Make
The $2 Million Pricing Error
A client came to us pricing their premium software at $29/month. They had 2,000 customers making $58K MRR. Sounds great, right?
Wrong. Their closest competitor charged $199/month with worse features. Their customers would easily pay $149/month. By underpricing, they left hundreds of thousands on the table every month.
The 5 Pricing Strategies That Actually Work:
Price based on the value you deliver, not your costs. If you save customers $10K/year, charge $3K. If you save them $100K, charge $30K.
$99 vs $100 isn't about the dollar, it's about perception. $97 converts better than $100. $999 beats $1,000 in most tests.
Offer three tiers: Basic ($29), Pro ($79), Enterprise ($299). Most pick Pro. Remove Enterprise? Now most pick Basic. The expensive tier anchors value.
Free gets them in. Limited features create friction. Premium removes friction. With 10K free users, even modest conversion creates hundreds of paying customers.
Product A: $50. Product B: $40. Bundle: $69 (save $21). Bundles increase average order value substantially and reduce decision fatigue.
How to Know If You're Priced Wrong
- ×Nearly all prospects say yes immediately (you're too cheap)
- ×You're significantly cheaper than competitors (race to the bottom)
- ×High churn rate (customers don't value what they're paying for)
- ✓Some say "too expensive" but qualified buyers convert (you're priced correctly)
- ✓Customers ask "what's included?" not "can you discount?" (value-focused buyers)
The Uncomfortable Truth:
If no one is complaining about your price, you're leaving money on the table. Every business should regularly test price increases on new customers. You'll lose some deals. That's the point. You want customers who value your solution, not bargain hunters.
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