💰 Not Selling Enough? Your Pricing Could Be the Problem

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Pricing isn’t just about numbers—it’s a strategic tool that can make or break your product’s success. Get it right, and you’ll attract the right customers while maximizing revenue. Get it wrong, and you risk alienating potential buyers or leaving money on the table.

TODAY’S TIP

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How To Price Your Offering

The first step to nailing your pricing is understanding your audience’s willingness to pay. This means doing a bit of market research. Look at what your competitors are charging for similar products and figure out where you fit. Are you solving a bigger problem or offering more value? That might justify a higher price. If you’re entering a crowded space, a lower price can help you stand out, but be cautious not to undervalue your product.

Next, consider using tiered pricing. Offering multiple plans (e.g., Basic, Pro, and Premium) caters to different customer needs and budgets. It’s a win-win: customers feel like they have options, and you get to upsell power users who are willing to pay more. Be strategic with what features go into each tier. Your free or lowest-cost tier should provide enough value to attract users, but your premium tiers should clearly deliver something extra that’s worth the upgrade.

Anchoring is another powerful psychological tactic. If your highest-priced option is $100/month, suddenly a $50/month plan looks like a steal—even if $50 is still higher than some competitors. This strategy works best when your tiers are structured thoughtfully, with each step up offering clear additional value.

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Test your pricing. Many creators set a price and forget about it, but the market evolves, and so should your strategy. Experiment with discounts, bundles, or limited-time offers to see what resonates. A/B testing can be invaluable here. For example, offer the same product at $20 to one group and $25 to another, then compare the conversion rates.

Communicate your value, not just the price. Customers aren’t buying your product—they’re buying what it can do for them. Your pricing page should highlight the benefits, not just list features. Instead of “Access to 10 templates,” try “Save hours with 10 ready-to-use templates designed for success.”

Lastly, don’t shy away from raising your prices when you’ve added value. Many founders fear losing customers, but if your product has improved or you’re delivering consistent results, your audience will often be willing to pay more. Just be transparent about why the price is changing, and frame it as a reflection of the enhanced value they’re receiving.

Remember, pricing is both an art and a science. The right price makes your product feel like a no-brainer to your target audience. So, keep experimenting and refining until you find that sweet spot.

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