Ask HN: How to chose a price for your digital product? Hello HN,
So the question I want to ask is: If you are selling a product, how do you know how much you'll price it? Thank you :) |
Ask HN: How to chose a price for your digital product? Hello HN,
So the question I want to ask is: If you are selling a product, how do you know how much you'll price it? Thank you :) |
You have to examine a number of things like the type of customer you're going after, the market environment, your name recognition, your runway and many others. Here's a simple framework that might be helpful. [0]
There is no law that you have to (or even should) price similarly to substantially similar products. There are many market inefficiencies that may allow you to charge much more than your supposed competitors. I'm writing a book on that very subject right now. [1]
In the meantime, here's an example of a pricing page teardown that I performed on Safari Books.[2] Looking at the mistakes they made may provide you with some insight into the types of problems that you will want to avoid.
* [0] https://taprun.com/framework/
That being said, you need to at least cover the cost of running your servers. Hopefully your competitor's pricing will do that. If not, you either need to charge more or cut the cost of running your servers.
Anchor your price based on the value you bring, not 'what it costs to run the service' + 20%
Speak to your ideal customers and learn what your service is worth.