Most founders price by feel. Most feel wrong. Pricing is not what you think your product is worth — it is what users are willing to pay. The only honest way to find that out is to test. Most price tests reveal the same thing: you could be charging more, and your users would still pay.
The fastest way to grow revenue is not building more features. It is fixing the price.
Pick one variable to test. Just one:
- Higher price — does it scare people off, or do they pay it?
- Lower price — does volume make up for the cut?
- Different package — fewer features at the same price, or more at a premium.
- Yearly discount — does annual pricing pull in more committed customers?
Run the test for 2 weeks. Half of new signups see version A, half see version B. Most payment platforms support this directly.
Test: yearly discount (20% off)
Version A (control): monthly only
Version B (test): monthly + 20% off yearly
Run for: 14 days
Track: conversion rate, revenue per signup, plan choice mix
Worried about upsetting paying users? Grandfather them. Keep their current price untouched. Run the test on new signups only. You will not break anything.
Pull conversion and revenue numbers from your payment tool, line them up against your acquisition data from first 100 users, and write down what you saw.
Bad: "I tested pricing for 3 days and the new price felt weird, so I stopped."
Good: "Tested $29 vs $49 for 14 days. Conversion dropped 12%, revenue per signup rose 41%. Keeping $49."
Bad: Changing the price for everyone overnight without telling anyone.
Good: Existing users grandfathered. New signups see the new price. Email sent to existing users explaining the change is upcoming.
- Testing for three days and calling it a result. Two weeks minimum.
- Changing pricing AND packaging AND discounts at once. One variable.
- Avoiding the test because you are afraid of the answer. The answer is information.
- Punishing existing users. Grandfather them. Always.
Pick one pricing variable. Set up an A/B test on new signups for 14 days. Grandfather existing users. Document conversion and revenue for both versions in Notion.
One pricing experiment completed with documented before-and-after numbers on conversion and revenue. The result can be "kept the new price," "kept the old price," or "inconclusive" — what matters is that you ran the test and have real numbers to show for it.
Most founders price by feel. Most feel wrong. Pricing is not what you think your product is worth — it is what users are willing to pay. The only honest way to find that out is to test. Most price tests reveal the same thing: you could be charging more, and your users would still pay.
The fastest way to grow revenue is not building more features. It is fixing the price.
Pick one variable to test. Just one:
- Higher price — does it scare people off, or do they pay it?
- Lower price — does volume make up for the cut?
- Different package — fewer features at the same price, or more at a premium.
- Yearly discount — does annual pricing pull in more committed customers?
Run the test for 2 weeks. Half of new signups see version A, half see version B. Most payment platforms support this directly.
Test: yearly discount (20% off)
Version A (control): monthly only
Version B (test): monthly + 20% off yearly
Run for: 14 days
Track: conversion rate, revenue per signup, plan choice mix
Worried about upsetting paying users? Grandfather them. Keep their current price untouched. Run the test on new signups only. You will not break anything.
Pull conversion and revenue numbers from your payment tool, line them up against your acquisition data from first 100 users, and write down what you saw.
Bad: "I tested pricing for 3 days and the new price felt weird, so I stopped."
Good: "Tested $29 vs $49 for 14 days. Conversion dropped 12%, revenue per signup rose 41%. Keeping $49."
Bad: Changing the price for everyone overnight without telling anyone.
Good: Existing users grandfathered. New signups see the new price. Email sent to existing users explaining the change is upcoming.
- Testing for three days and calling it a result. Two weeks minimum.
- Changing pricing AND packaging AND discounts at once. One variable.
- Avoiding the test because you are afraid of the answer. The answer is information.
- Punishing existing users. Grandfather them. Always.
Pick one pricing variable. Set up an A/B test on new signups for 14 days. Grandfather existing users. Document conversion and revenue for both versions in Notion.
One pricing experiment completed with documented before-and-after numbers on conversion and revenue. The result can be "kept the new price," "kept the old price," or "inconclusive" — what matters is that you ran the test and have real numbers to show for it.