Give your customers what they want: a simple product pricing strategy.
Vadim Katcherovski, CEO of Easy Projects, shares a valuable product pricing strategy lesson in VentureBeat that he learned when his own company provided customers with too many options.
Katcherovski writes that his company “wanted to do something to super-charge” growth so that it invest more in development and marketing. To do so, his company created “an intelligent, tiered pricing system” so that customers “could pick the features and the options they like, at a price that was closest to the maximum amount they were willing to pay.” Katcherovski warns that “the unforeseen effect of this attempt, though, was an almost 50% increase in the options the customers had to choose from,” which, as he points out, “can lead to paralyzing indecision.” In the end, Easy Projects simplified its pricing model, and the company “saw a drastic improvement” in sales. When it comes to product pricing strategy, sometimes less is more.