On Pricing and Price Points

Someone asked me today how much I would pay for a subscription to a recorded video library of product-related training. 

The answer lays out a couple of pricing strategies

  1. The One Time, Higher Than one month, One Time Ticket Pricing
    Personal preference. I generally don't like to subscribe to monthly options, because I frequently forget to cancel subscriptions.

    Depending on your pricing, i might be ok to pay for a one-time or a 3 video watch  - and this pricing can be higher than a monthly price... so it works for you because you get more than one month worth, and it works for me because i dont pay for one month extra and then run back asking for a refund on the 1st day of the second month.

  2. How much should be the minimum monthly or quarterly price?
    • i dont mind the one session price of INR 399
    • I have left my Medium.com $5 subscription on for many months.  But i read only in 2 months of the year, roughly
    • i dont bother about the INR129 for my amazon prime
    • dont mind the lower price band of netflix which is INR 199
    • Notice the "comfort bands" of prices. 

Comfort Price Bands

Psychologically I have already bought into these prices and these are not high priced for me anymore. My mind is immune to them. So if they would pick from one of these price bands, I might take the bait without thinking much about it. 

However, if there was an odd price band, say INR 275, I'm not used to that. Even though mathematically it is in the same range. I would think a little extra about that price band and would delay my purchase until my mind managed to figure out a rational explanation to that number.

The existing price bands have already been rationalized in my mind and my mind has figured out a rational explanation to them. So I don't spend so much time thinking about it. I get a "Go-Ahead" signal from my brain very easily.

0 comments:

Post a Comment

About Me

My photo
Hybrid specimen. Likes mixing abstract concepts into a heady cocktail. Likes mixing people together to see what they can do. Also, PC whisperer, Virus Terminator, entrepreneur in a couple of years, "nice guy", INTJ more...