Pricing research to improve your startup’s profitability with data, not guesswork

You can’t afford to slip up, especially as an early-stage startup. That’s why you prefer to make data-driven decisions...

So why should you be any different when it comes to pricing?

Picking your product’s perfect price isn’t easy without data. Not to mention that:

• Your customers are price sensitive and bring up pricing often in sales conversations.
• You want people to buy your product because of the value it creates. And not for the price you charge.
• You’re scared of turning customers away with the wrong price, so you priced it lower than what you really want to charge.

This is why you need a research method to optimize your pricing.

What is pricing research? And why is it critical for early-stage SaaS startups to grow faster?

When it comes to pricing, most founders fall into one of two categories:

1. They look at their competitors and pick a price. 
2. They pick a price out of thin air that “feels” right.

Very few founders are making pricing data-driven decisions. 

If that’s you, that means you’re leaving a lot of money on the table.

The good news?

If your competitors haven’t optimized their price, you have a huge opportunity to scale your growth faster with pricing research.

Did you know that improving your price by 1% can increase your revenue almost 4x more than a 1% increase in acquisition can? (1)

Consider this:

1. A 1% increase in acquisition will only improve your revenue 3.32%.
2. A 1% increase in retention will only improve your revenue 6.71%.
3. But a 1% increase in monetization will improve your revenue 12.7%.

This is because your price will change the speed of market penetration and profit maximization.

With the right pricing strategy, you can invest more money into your product, your service, or your growth.

To get the data to properly price your product, you need pricing research.

Pricing research is the process of talking to your customers to find out what they would be willing to pay for your product or features.

A price study will help you create a 10x product that your customers love and are willing to pay a premium price to own.

Thus a market research price study will not only increase your profit, it will also increase your customer base.

Which brings me to my next point...

How does Growth Ramp do a pricing study to help you get 1,000 customers in a year?

Imagine I were to offer you a Tesla for $500. 

Most likely you would ask me, “What’s wrong with the car?”

Founders are aware that if their product’s price is too high, it will increase sales objections. The same is true if it’s priced too low.

But optimizing the price of your product does more than improve your conversions. It will improve your product roadmap too.

Our pricing research will help you get data-driven answers to questions like:

1. “Should I create a new pricing tier, remove a plan, or move features between plans?”
2. “What will get someone to go from free trial or freemium to paying customer?”
3. “Am I giving away too much in any plan?”
4. “Will this feature I’m looking to build increase our profit?”
5. “Is my pricing correct? How can I optimize my pricing strategy?”

If you want to focus on improving your product, do you really want to think through how you’ll get the data you need to answer these pricing questions?

Sure, you can go off your gut to execute your pricing strategy. You might even get a few of these answers if you’re constantly talking to your customers.

But if you’d rather partner with an agency that knows early-stage strategy better than you, apply to hire Growth Ramp. We’ll take care of the pricing research for you and hand everything to you on a silver platter.

To get this pricing data, we begin by talking to your customers.

All our product marketing services take a customer-first approach to product-led growth. Thus our market research to find your product’s optimal price begins by surveying and interviewing your customers.

At Growth Ramp, we use the Van Westendorp Method to find the range of what your customers are willing to pay for your product.

With this pricing method, we ask four questions to learn:

1. What is the market penetration price of your product?
2. What is the profit maximization price of your product?

This allows us to create a price sensitivity analysis. In simple terms, we’re looking to price your product in the money zone:

Depending on your brand positioning and the pricing strategy we recommend, we’ll price your product in that zone to scale your growth faster.

Apply to hire Growth Ramp and let us take care of the pricing research for you to scale your growth faster.

What sets Growth Ramp apart from digital marketing agencies offering pricing consulting services?

Our competitor intelligence services informed us that few digital marketing agencies offer pricing research.

The majority of agencies that do offer pricing research do not consider your full marketing strategy. As a result, the price an agency suggests may not align with your positioning strategy or go-to-market strategy. 

This will lower your conversion rates if your growth strategies do not work together.

This is why our pricing strategy services are something you won’t find anywhere else.

Now consider the value of Growth Ramp’s pricing research services when combined with our product marketing services:

1. You don’t need to run several market research studies, which saves you money. One study gets you massive results to optimize your positioning, pricing, and go-to-market strategy.
2. We understand how pricing fits with your full marketing strategy. We won’t sacrifice one growth lever for the benefit of another lever.
3. And because most founders underprice their product, after our price analysis, we’ll run a price increase campaign. This often pays for the initial investment in 2-6 months. Which means you continue getting more growth for months to come.

Rather than floating in space with no clue what to do, apply to hire Growth Ramp to optimize your pricing and help you get 1,000 customers in a year.