Pricing Observer http://pricingobserver.com Pricing Strategy, Structure and Process - A Collection of Various Approaches posterous.com Thu, 16 Jun 2011 22:43:42 -0700 Twilio Pricing Pages http://pricingobserver.com/twilio-pricing-pages http://pricingobserver.com/twilio-pricing-pages

As Twilio states right out of the gate, “No contracts, no setup charges, no shenanigans.”  Take a look at how they are communicating their pricing.  I have also included the pricing page for Precision Polling, which is built on the Twilio platform.

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http://files.posterous.com/user_profile_pics/699953/PricingWire_mark_redRGB_56x56.jpg http://posterous.com/users/eDA3lSKu4h Pricing Observer Chris Pricing Observer
Tue, 14 Dec 2010 22:02:00 -0800 Moshi Monsters - Pricing Page & More Observations http://pricingobserver.com/moshi-monsters-pricing-page-more-observations http://pricingobserver.com/moshi-monsters-pricing-page-more-observations

Today I received an email from my 10 year old daughter, that if anything, demonstrates how products targeted at kids can grow very fast.  As you already know, word-of-mouth advertising amongst family and friends is the most powerful means for a business to generate new prospects with the highest probability of becoming paying customers.

Below my comments I have included the email from my daughter (which is the first time I have heard of Moshi Monsters) and screenshots from the Moshi Monster website.

1_grace_moshi_email

Here are a few comments to think about . . .

Why Become A Moshi Member? Page
They are taking the Freemium approach and begin listing the reasons why you would want to upgrade to “get exclusive access to all sorts of cool extras”.

2_why_become_moshi_member

Info For Parents - Becoming A Moshi Member Page
- via the "Parents Learn More" link on above page -
Pay careful attention to the value messaging on this page and how they have prioritized what messages they believe will resonate best and create paying customers (Safe, Fun, Educational, Value For Money).  Also, note the testimonials on this page (are you using testimonials . . you should) and how they have segmented 3 types of testimonials that would matter to prospects.
3_info_for_parents

Select Your Location Page
- via the "Join Now" link -
Simple.  Note they don’t go into any form of explanation, just simply self segment yourself to the geographic location that applies to you.  Clicking one of these links takes you to the Select Your Price Package page.
4_select_location

Select Your Price Package Page
- via the "Select Your Location" Page links -
First observation that stuck out to me is that the 6-Months option actually costs more per month than the 1-Month or 12-Months option (I wonder how many times this is being chosen).  Second, note how simple they make this step . . . they don’t break down a comparison because they have kept their offering simple . . . either you want to join and get the “exclusive cool extras” or you don’t . . . just choose how you want to pay and “cancel anytime”.  Third, take note of the fourth option (in addition to the 3 available month-based options) which is purchasing a Moshi Time Card from a number of retailer locations.  Keep in mind, I rarely see this approach getting very good placement in retail stores . . . you would not be banking on this distribution method creating impulse purchases . . . customers would most likely have to find out about this option in some other way, perhaps from friends, family or an email from their child.
5_select_price_package
6_moshi_time_card_info

If you want to take a proactive approach to your Value Messaging and Pricing Strategy . . . let’s talk and get your business optimized for the best results and best returns.  http://www.pricingwire.com

 

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http://files.posterous.com/user_profile_pics/699953/PricingWire_mark_redRGB_56x56.jpg http://posterous.com/users/eDA3lSKu4h Pricing Observer Chris Pricing Observer
Thu, 25 Nov 2010 20:49:54 -0800 BOOMI Offerings and Pricing http://pricingobserver.com/boomi-offerings-and-pricing http://pricingobserver.com/boomi-offerings-and-pricing

A recent tweet of mine, was kindly replied to by Richard Blackham of Metaconomy (see screenshots).
Turns out, early this month it was announced that Dell was acquiring a company called BOOMI. 

I thought I’d capture their Pricing & Signup page and keep an eye on the company to see how the acquisition may (or may not) change their approach.

Please note their approach to two versions of support under the full edition comparison screenshot.  More I could comment on, but not today.

Here is a link directly to their pricing page:  http://www.boomi.com/products/editions/pricing

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http://files.posterous.com/user_profile_pics/699953/PricingWire_mark_redRGB_56x56.jpg http://posterous.com/users/eDA3lSKu4h Pricing Observer Chris Pricing Observer
Tue, 23 Nov 2010 19:29:59 -0800 What Do They Have To Look Forward To http://pricingobserver.com/what-do-they-have-to-look-forward-to http://pricingobserver.com/what-do-they-have-to-look-forward-to
Jeep_coming_soon

How are you creating interest in the direction your company is going?

How are you communicating this to your prospects and customers?

Here is just one example by Jeep, and they could be leveraging this approach much more effectively.

Contact me if you want to create more powerful connections with your customers and prospects.

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http://files.posterous.com/user_profile_pics/699953/PricingWire_mark_redRGB_56x56.jpg http://posterous.com/users/eDA3lSKu4h Pricing Observer Chris Pricing Observer
Fri, 24 Sep 2010 22:33:00 -0700 The Wall Street Journal: Displayed Per Week, Charged Per Year http://pricingobserver.com/the-wall-street-journal-3-options-2-offerings http://pricingobserver.com/the-wall-street-journal-3-options-2-offerings

Which would you choose? 
Note: they display pricing by the week, however they will charge you for the year.

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http://files.posterous.com/user_profile_pics/699953/PricingWire_mark_redRGB_56x56.jpg http://posterous.com/users/eDA3lSKu4h Pricing Observer Chris Pricing Observer
Mon, 29 Mar 2010 22:17:00 -0700 Wufoo Pricing Page Update http://pricingobserver.com/wufoo-pricing-page-update http://pricingobserver.com/wufoo-pricing-page-update

Quick update on Wufoo’s pricing page shows they have increased both the Bona Fide and Ad Hoc plans by $5 per month (appears to be the only changes to the page).  Prior post for Wufoo is found here.

 

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http://files.posterous.com/user_profile_pics/699953/PricingWire_mark_redRGB_56x56.jpg http://posterous.com/users/eDA3lSKu4h Pricing Observer Chris Pricing Observer
Wed, 10 Feb 2010 11:35:00 -0800 Bantam Live Post Beta Pricing Page http://pricingobserver.com/bantam-live-post-beta-pricing-page http://pricingobserver.com/bantam-live-post-beta-pricing-page

To follow up on our previous post around Bantam Live pricing, I have included a screenshot of the pricing page they deemed worthy of their post beta launch.

Image001

Some brief notes:

a.  They have done their homework and clearly incorporated elements (best practices) that have worked for other companies.

b.  “30-DAY FREE TRIAL ON ALL ACCOUNTS" addresses the prospect’s natural aversion to risk.

c.  “ACTIVATE YOUR PRIVATE WORKSPACE IN 60 SECONDS”  implies simplicity and answers a question all prospects ask: “how long will this take”

d.  Top value plan is first on left to establish reference price and value, then works high to low from left to right, with “Most Popular” (sweet spot) plan front and center.

e.  Sweet spot plan,
as mentioned above, is front and center with green background on header and called out as “Most Popular”

f.  Excellent headers regarding : plan names, price placement and suggestive plan segments (e.g. – for business teams, for small groups).

g.  8 plan comparative elements (e.g. – workspace, workgroups, users, storage, etc.) is right about the limit. I typically would recommend 4 to 7, with 10 max.

h.  10 max (mentioned above) speaks to prioritized value drivers above the fold, page load viewable. Enabling expanding sections for more details is another topic / option.

i.  They repeat the comparative element text for each plan (e.g. - "Storage” next to value under each plan), rather than listing these once on the left with only the value under each plan.

j.  Hover details is always a must, which they do well with the hover display design, although the hover detail links may not be obvious enough (should be, but is it).

k.  Interesting to only enable the hover details on the Most Popular Plan. Again repeating comparative elements text adds to the appearance of complexity / adds friction to the decision process.

l.  “Today’s Offer” is intended to create a sense of urgency and encourage sign-up today at the expense of the offer not being available if the prospect delays their decision.

m.  I like the Sign Up buttons and if you visit their pricing page { https://app.bantamlive.com/plans } note the additional information below what I provide in the screenshot and comment on today (e.g.  de-emphasizing a FREE Plan).

I have not provided what areas need improvement and where opportunities exist, but as with all my comments above . . . what really matters is what performs best and A/B testing must be leveraged to fine tune, incorporate improvements to their solutions / offerings  and continuously address changes in the market.

Image001

Note: you can always click the images on this site to view a larger version

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Wed, 23 Dec 2009 15:20:00 -0800 Bantam Live Announces End of Beta & Pricing Plans http://pricingobserver.com/bantam-live-announces-end-of-beta-and-pricing http://pricingobserver.com/bantam-live-announces-end-of-beta-and-pricing

Bantam Live announced via email today that they will exit public beta on January 26th and provided a preview of the their tentative offerings and pricing.  They do not mention extending a perpetually free offering, but do offer an extended 30 day free trial period to those who sign-up for a paid subscription plan when Bantam Live formally distributes their “go-live” pricing plans.

Announcing this, roughly one month in advance, gives them time to assess and evaluate the nature of the responses they receive and make some key business decisions with respect to any possible adjustments or updates to their Offerings and Pricing.

I do not have access to the information they have available to base their decisions on, but I “quickly” put together a possible Pricing Structure they might consider instead.  The two suggestions (in color) are quickly provided without the benefits of the information Bantam Live has access to (between my two possibilities, the only difference is the price points).  Additionally, there is much more that goes into optimizing a pricing page to best position your value proposition for maximum conversions, which I do not cover here.

http://www.bantamlive.com/

- As always, you may click the larger image below to view an even larger image -

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http://files.posterous.com/user_profile_pics/699953/PricingWire_mark_redRGB_56x56.jpg http://posterous.com/users/eDA3lSKu4h Pricing Observer Chris Pricing Observer
Fri, 06 Nov 2009 11:36:00 -0800 Network Solutions - Domain Name Purchase Process http://pricingobserver.com/network-solutions-domain-name-purchase-proces http://pricingobserver.com/network-solutions-domain-name-purchase-proces

So I had another one of my “brilliant” ideas recently and decided I should secure the relevant domain name, of course fully expecting the idea will pan out.

Network Solutions has been around for a long time, in fact if you click the link you will discover . . . . much longer than you may think.  I have registered a number of domain names over the years and have also used other providers such as GoDaddy.com and Register.com.  If you were to conduct a Google search for “domain name registration” the top three results (as well as top 3 sponsored links) are those three companies; Network Solutions, Register.com, and GoDaddy.com.

Because Network Solutions has been at this for so long, wouldn’t you think they have become really good at optimizing the process and have fine-tuned what content to include, content location, content format and overall design.  You decide.

Below I have captured the complete purchase process from the point where I have decided to check-out.  Total time was around 5 minutes (I subtracted the time it took me to grab screenshots).

Some brief elements I’d like to point out:

1) Initially, you get the impression that the process is going to take 3 steps, but really each of those first 3 steps are communicating additional offerings (upgrades, add-ons) they want you to consider.  Perhaps a bit misleading though, as the user likely is initially thinking the whole process is only 3 steps.

2) To advance through the first 3 steps, the user must scroll down the page, exposing the offers along the way, to find the “continue” button.

3) Next, is the real check out process which is 4 steps.  The first step is to decide the registration duration (and thus pricing) for each domain you are purchasing.  Note the Slidebar approach, which I have provided a few shots on how sliding the bar changes the price.  Five years is the default setting and note the “Did You Know” statement.

4) Throughout the rest of the process there are a number of noteworthy elements (e.g. – suggestions) that I won’t call out here, but take a look, observe and consider.  I also included screenshots of what happens if you click on the "feedback" or "follow us on Twitter" links, as well as the email confirmation.

Watch for a future post on PricingWire ( http://www.pricingwire.com ) if you want to know more about the compelling idea I have in mind for The Best Solution Summit.

 - - as always, click the larger image to see an even larger image - -

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http://files.posterous.com/user_profile_pics/699953/PricingWire_mark_redRGB_56x56.jpg http://posterous.com/users/eDA3lSKu4h Pricing Observer Chris Pricing Observer
Fri, 23 Oct 2009 23:21:00 -0700 Producteev Updates Pricing Page http://pricingobserver.com/producteev-updates-pricing-page http://pricingobserver.com/producteev-updates-pricing-page

It has been almost seven months since I first posted Producteev’s pricing page on PricingWire back in March, when they were launching public beta.

Producteev is now out of beta and with this recent pricing page update they appear to have gained some insight into what they believe customers are willing to pay (or perhaps they are just giving it a go with little to no data to support their decision).

Across most of their offerings, not only have they changed prices (increased), but they also modified file storage allocation and number of users.  They have also de-emphasized the Free offering for non-students, as well as now make mention of a white label version which is an idea I like a lot.  Additionally, they have picked up on the best practice of including testimonials.

Overall, they have made some nice improvements and I like that they are attempting to raise prices now that they are out of beta.  It is always easier to lower prices than raise them (messaging is critical in both cases).  Briefly, a couple areas I’d like to see them address would be the spacing between the different offering boxes . . . it just seems a little off and not uniform.  Also, they could use a good once over by a copy editor.  For example, this copy at the top of the pricing page just doesn’t sound right, “Try any of those plans for free during 14 days!”.

One more nice touch, is that they include three offerings with sign-up buttons below the fold, at the bottom of each page on their site.  It would be interesting to see how many clicks come from these.

I personally still prefer the organization of the beta pricing page (note beta next to logo), but keep in mind what matters is which page performs the best, not personal preference. 

- - as always, you can click the larger image to see an even larger version - -

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http://files.posterous.com/user_profile_pics/699953/PricingWire_mark_redRGB_56x56.jpg http://posterous.com/users/eDA3lSKu4h Pricing Observer Chris Pricing Observer
Tue, 25 Aug 2009 00:14:00 -0700 Harvard Business Review - Subscription Offerings & Process http://pricingobserver.com/harvard-business-review-subscription-offering http://pricingobserver.com/harvard-business-review-subscription-offering

I have personally been to the HBR Subscription page at least 3 times in the past year and decided not to proceed each time.  Tonight, nothing on the site compelled me to go ahead and get out my credit card, rather it is a project that I am working on that tipped my curiosity to the point of being willing to pay to search their database and determine if similar efforts have been undertaken by others.

Below is the series of pages I was guided through.  It took me longer to decide which of the three offerings to choose, than it did to complete the subscription process (total time 7mins 38secs).

A few notes:

 -  Prices are not displayed until you select your country

 -  Risk Messaging:

     “You may cancel at any time and receive a full refund on the remainder of your
     subscription”

 -  On Screen 3 my “subscriber id” is referenced, but on Screen 4 reference is made
     to “account number"

     If my Subscriber ID hadn’t been auto-populated in the Account Number field,
     this inconsistent terminology is an unnecessary time consumer for their new
     customers

 -  Numbering the steps on Screen 4, is a simple method to guide customers and
    communicate simplicity

 -  As always, simply click any image to see an even larger view

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http://files.posterous.com/user_profile_pics/699953/PricingWire_mark_redRGB_56x56.jpg http://posterous.com/users/eDA3lSKu4h Pricing Observer Chris Pricing Observer
Fri, 21 Aug 2009 15:32:48 -0700 The Value Play Book - First Look . . . More to Come http://pricingobserver.com/the-value-play-book-first-look-more-to-come http://pricingobserver.com/the-value-play-book-first-look-more-to-come

Get ready to transform the way you think about the world you operate your business within.

This is a first look at a project I am working on named:

The Value Play Book

Simplified steps of clarity to quickly achieve sustainable market success.

I really look forward to sharing more soon, if you would like to receive updates or simply learn more . . . let me know.

Image001

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http://files.posterous.com/user_profile_pics/699953/PricingWire_mark_redRGB_56x56.jpg http://posterous.com/users/eDA3lSKu4h Pricing Observer Chris Pricing Observer
Tue, 18 Aug 2009 18:43:34 -0700 TypePad - Great Take Aways For You To Consider http://pricingobserver.com/typepad-great-take-aways-for-you-to-consider http://pricingobserver.com/typepad-great-take-aways-for-you-to-consider

Please take note of :

  - Calls to action

  - Clean design

  - Testimonial (only one, better than none)

  - Hover over question-mark for more information

  - Limited info (which is good, not overwhelming), but includes link “Show more details” for those that want more

  -  Free Trial Sign-up Page includes: Live Chat option and Process Progress Steps “visualizer” at top

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http://files.posterous.com/user_profile_pics/699953/PricingWire_mark_redRGB_56x56.jpg http://posterous.com/users/eDA3lSKu4h Pricing Observer Chris Pricing Observer
Tue, 04 Aug 2009 23:30:57 -0700 A Tale of Two Segments for Bill.com http://pricingobserver.com/a-tale-of-two-segments-for-billcom http://pricingobserver.com/a-tale-of-two-segments-for-billcom

Bill.com is clearly targeting two segments and doing so allows them to craft more compelling value messaging that should resonate more effectively with businesses and accountants.

Aside from some needed design enhancements, Bill.com has included many key elements that help translate into more conversions.

Key elements such as:

  -  Benefits

  -  Testimonials

  -  “Risk Free” messaging

  -  Cost Savings Example

The design would benefit from achieving a less text heavy appearance, which can be accomplished without losing what they are trying to convey.

* As always, click on the larger image to view an even larger image.

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http://files.posterous.com/user_profile_pics/699953/PricingWire_mark_redRGB_56x56.jpg http://posterous.com/users/eDA3lSKu4h Pricing Observer Chris Pricing Observer
Sun, 12 Jul 2009 17:15:05 -0700 On Vacation until July 30th http://pricingobserver.com/on-vacation-until-july-30th http://pricingobserver.com/on-vacation-until-july-30th

Image001

In the interim, consider spending some time pondering posts at PricingWire . . .

    http://www.pricingwire.com

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Wed, 08 Jul 2009 12:03:32 -0700 Ads by Google Slightly Out of Synch with TechCrunch Post http://pricingobserver.com/ads-by-google-slightly-out-of-synch-with-tech http://pricingobserver.com/ads-by-google-slightly-out-of-synch-with-tech

The “Ads by Google” ad next to the TechCrunch logo caught my eye with respect to the subject of the post.

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http://files.posterous.com/user_profile_pics/699953/PricingWire_mark_redRGB_56x56.jpg http://posterous.com/users/eDA3lSKu4h Pricing Observer Chris Pricing Observer
Tue, 07 Jul 2009 08:27:00 -0700 LinkedIn - Pricing Pages - Upgrades "Get 2 Months Free" http://pricingobserver.com/linkedin-pricing-pages-upgrades-get-2-months http://pricingobserver.com/linkedin-pricing-pages-upgrades-get-2-months

 

As one of the current big players along with Facebook, Twiiter and MySpace . . . I have been meaning to post pricing pages for LinkedIn for some time now.

* Note: for below images, click the larger image for an even larger (better quality) image.

Some elements to point out . . .

-  The difference between Comparison Pricing Page and Upgrade Pricing Page

-  “Get 2 Months Free” is for those who opt for the Annual Payment (not monthly)

-  “Recommended” offering – you can influence users this way

      -  Other examples of this:  “Our Most Popular Plan”, “Best Value”, etc.

Notice that LinkedIn can forecast system demand based on how they segment the offerings they make available to their users.  Such as tiered limitations on sending Introduction Requests, InMails and Search Results.

Also, consider a large percentage of active users are likely going to be individuals who are either out of work or seeking greener pastures.  Their pricing structure compels users to consider the value of the “potential” for more opportunities to improve their lives and upgrade their lifestyles.

With that said, I believe LinkedIn is missing some valuable opportunities to convert more free users into paid customers.  Why do I say that?  Upgrading is not promoted to free users as actively as it could be.  Certainly not implying that they should spam or go over-board, but they could provide more apparent opportunities to take advantage of LinkedIn’s “additional benefits”.

If you happen to know, please pass along what LinkedIn’s  “free user”  to  “paid customer” ratio is? 

* Note: for below images, click the larger image for an even larger (better quality) image.

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http://files.posterous.com/user_profile_pics/699953/PricingWire_mark_redRGB_56x56.jpg http://posterous.com/users/eDA3lSKu4h Pricing Observer Chris Pricing Observer
Mon, 06 Jul 2009 11:21:00 -0700 37signals - Learn From Their Experience - A/B Test Iterations + Willingness To Try New Approaches http://pricingobserver.com/37signals-learn-from-their-experience-ab-test http://pricingobserver.com/37signals-learn-from-their-experience-ab-test

If you are considering launching soon or have already launched and believe you have room for improvement, consider spending some time observing how 37signals has fined tuned their product and pricing presentation over time.  Just some of the key elements for you to observe is the layout, the messaging and the fact they are providing well produced video testimonials of actual users.  As noted in the video below, their current sites are a result of multiple A/B test iterations and a willingness to try new approaches.

In addition to the screenshots below . . . I have also provided a worthwhile video of a presentation that the creator of the Ruby on Rails framework and partner at 37signals, David Heinemeier Hansson, provided at Startup School `08.  http://www.pricingwire.com/home/2009/3/11/a-secret-to-making-money-online.html

One more great resource to take a look at is Robert Dempsey’s blog post:  http://blog.adsdevshop.com/2009/02/27/how-to-price-your-app-learning-from-basecamp/

Click thru the below screenshots and click the larger version for an even larger version.

 

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http://files.posterous.com/user_profile_pics/699953/PricingWire_mark_redRGB_56x56.jpg http://posterous.com/users/eDA3lSKu4h Pricing Observer Chris Pricing Observer
Fri, 03 Jul 2009 15:32:24 -0700 WUFOO - Unexpected Conversion Barriers Today http://pricingobserver.com/wufoo-unexpected-conversion-barriers-today http://pricingobserver.com/wufoo-unexpected-conversion-barriers-today

Consider the below Tweet and keep in mind that there are other barriers to conversion that can pop-up unexpectedly.

Here is a Tweet by WUFOO today.

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Here is their Pricing Page, which I consider to be an excellent example for those looking to update or design their own pricing page.

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http://files.posterous.com/user_profile_pics/699953/PricingWire_mark_redRGB_56x56.jpg http://posterous.com/users/eDA3lSKu4h Pricing Observer Chris Pricing Observer
Fri, 03 Jul 2009 15:13:00 -0700 LogMeIn IPO'd with this Approach http://pricingobserver.com/logmein-ipod-with-this-approach http://pricingobserver.com/logmein-ipod-with-this-approach

For all those who jumped on LogMeIn’s IPO this week . . . tell them to contact me to improve conversion by improving how they communicate their value and pricing.

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http://files.posterous.com/user_profile_pics/699953/PricingWire_mark_redRGB_56x56.jpg http://posterous.com/users/eDA3lSKu4h Pricing Observer Chris Pricing Observer