1. secrets of pricing
(as if I knew...)
Chris Eben
chris@twg.ca
@ceben

2. + ≠

3. pricing should
accomplish 3 things
1. achieve financial/profitability goals
2. support brand and positioning
3. meet market and customer expectations
- i.e. customers will buy

4. psychology of pricing
• anchoring - the baseline for your
price going forward
• you don’t always get to set the
anchor

6. cost vs value
• cost based pricing is • value based pricing is
easy hard
• understand your costs • understand perceived vs
but remember your quantifiable (ROI) value
customers don’t care to the customer
• don’t price based on • must be developed
cost plus a desired through real customer
margin insight

7. pricing markets
• analyzing the competitive landscape
• how do you want to be compared to the
competition?
• brand impact - your price deeply impacts your
brand
• finding reasonable comparables / anchors
• Typical models - what do customers expect
already

8. price testing
• customer/analyst validation interviews
• metrics and funnel
• Pirate Metrics (Acquisition, Activation, Retention,
Referral, Revenue - AARRR) by Dave McClure
• SaaS Math by Mark MacCleod
• split testing / experiments
• Freshbooks is a great local example - Mike
McDerment is an expert
• rename/reconfigure products as necessary along the way

9. niche pricing
• pricing isn’t the hard part - positioning is
• if you can access a niche market, your price
point can be higher
• any commoditization of your product or
market will drive the price down to zero

10. models
• unit/perpetual
• subscription
• freemium (don’t mistake free trials for free)
• pay for features, pay for usage, pay for privacy,
pay to turn off ads, etc...
• move customers through the funnel
• in-app purchase

11. Q &A
Chris Eben
chris@twg.ca
@ceben