Chart out the Willingness to Pay curve

Survey with 4 questions

• What price too expensive
• what price starts to get expensive
• what price is it a good deal
• what price is too cheap to question quality

Notion of value based pricing // Value metric

• Identify your value metric - alignment with core value to customer
• Does it scale with the usage of product
• is it easy to understand?

Economist case study (impact of benchmarking price)

• Decoy package in the middle to obfuscate comparison between web and print version
• Price as a signal of value

Lessons on SaaS pricing

• Coordinate efforts of growth and sales team
• Single version of price shared to customers

Consumer psychology

(a) Principle of reciprocity

• free sample, demo means more likely to purchase