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by turkeywelder 2247 days ago
As a consumer I'm really not a fan of these techniques. I'm biased but our SaaS just has one price, no annual discount, no messing. It seems to be working out. I think people appreciate the straightforward approach when everything these days seems to have a pricing table.
3 comments

There are no rules to life - you get to decide what you do with your own life. Assuming you make a comfortable living out of what you do, the Craigslist approach - they make a LOT of money but leave 90%+ of what is possible on the table - is a perfectly valid plan.

If you want to make more - and the reasons for that can vary from pure greed to absolute need - experimenting with pricing can have the best effect, as every extra dollar MRR compounds over time, and it is often easier to get 10% out of customers than 10% more customers. The patio11 "charge more" advice is an easy place to start, and if you grandfather in all old accounts, there is minimal risk in doing so.

But it is your business, so do what you think is best.

> I'm biased but our SaaS just has one price, no annual discount, no messing.

I offer an annual discount for a product of mine, primarily because for a one year plan it only costs me a single transaction cost from my payment processor instead of x12 transaction costs.

Nothing at all wrong with it. It's just something we haven't done yet. Priorities, features and bugs all battle for our limited resources.
It is proven that a very large portion of the population gets a thrill or some type of desirable chemical reaction in their brain when they purchase something for a “reduced” price. People like to feel that they’re special and got something that maybe someone else didn’t, or that “they” beat the system.

Most obvious recent example is to search online for JC Penney’s pricing strategy fail, where a prominent Apple executive had the same exact thought you did, and completely alienated the JC Penney shoppers who actually like seeing a price tag say $100 and then get surprised with various discounts at the cash register and see it be $20.