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Phase 1 Pricing Test Under the Microscope

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Jeremy Levitt

on 29 August 2014

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Transcript of Phase 1 Pricing Test Under the Microscope

Businesses see the point of an annual fee
Very little resistance to paying to get access to our service
This model is easier to explain, easier to understand
Annual fee + monthly plan + pay as you go if you go over your plan
We know that getting leads out of the way works
You shouldn't have to change how much you pay just to see new types of work available or to see what's going on in other areas.

Payments should be tied to how much you want to contact customers.
We made more money in month 1 of business' life
We made more from August signups in August than we did from July signups in July. $20,000 higher.

The Pricing Model Works
$20k more, but what about after the first month?
Most of the improvement was from introducing the annual fee.

But after the first month, we will actually make less if we continue this exact pricing.
Those who paid, quoted 40% less
When you pay an up front fee, you are less likely to spend on quoting.

This is not good for Julie, we need to get more active businesses not fewer.
16% fewer businesses paid
Usually, a lot more of those who sign up go on to pay us. The higher price turned off some people.
Encourage more quoting
Annual fee reduced or waived if you buy a plan
More quotes included in each plan
One-off quotes priced lower
Not the model
Still Annual Fee
Still S, M, L plans
Same price for Plans $55, $99, $199
Still have a PAYG option
The Good
The room for improvement
What will we tweak?
Phase 1 Pricing Test under the microscope
Who'll get this?
400 super active users
Inactive users
About-to-expire annual members
helping you #knowyournumbers and #seeandsolveproblems
Full transcript