This was a nice read. Thank have seen this kind of pricing strategy many times, but the name was new to me.
I run a tiny substack and haven’t really given the whole pricing strategy much thought.
I did however today decide to do something «crazy». I created a special discount, for annual subscription and it needs to be redeemed by jan 1, 2025. With that you get 90% off forever.
My purpose is simply to attract those who want to give it a go and support the small newsletter and see where it goes, without going broke.
Will be interesting to see what happens. I have posted about this today.
It's price anchoring because you get maybe triple the amount of popcorn for less than double the price, but also "decoy" pricing because all they really want you to buy is the large, the small and medium are decoys. 7 for popcorn that cost them less than 0.5 to make is still a hefty margin.
That's why I bring my own snacks to the cinema, its actually not illegal, even though it feels like it is.
I think it might be different on the fiction side of the coin. I've been doing this for quite some time, and my growth has been at a dead turtle's pace. I charge $30 for a yearly Subscription, and $10 for monthly...and crickets. I even had a summer blowout sale at $6 for the year, and still...crickets. I could understand if the writing I offered was shit, but it's not. It's just that people feel they should not have to pay for fiction because fiction just offers stories, and everything else, gives value for the dollar. A little strange I think.
I didn’t know there was a name for it. I just recently turned my paid subscriptions on and actually set it up that way.😂 thank you for sharing this! Very helpful info!
The anchoring suggestion is a good fit with my plans to structure more courses here in time. I have a number of old ones on Teachable that I've considered migrating, and a high monthly rate is a good counter to a "clean out the cupboard then cancel" approach that I've thought some content pirates might have.
As an author just beginning to think about opening up to paid subscribers, this is really interesting!
thank you, I also thought this was quite interesting :D
There’s a ton of psychology in marketing. It’s not just about putting a pretty package together. I wish it was!😂
If there's one thing I'm grateful for after I started my Substack journey is all the new things I get to learn about.
Stepping out of my comfort zone has made me grow in many aspects.
I'll try this pricing strategy on my Substack.
amazing :) 🙌
Already implemented. I'm excited to share the results of this experiment with you.
yeees, please do! 🤩
This was a nice read. Thank have seen this kind of pricing strategy many times, but the name was new to me.
I run a tiny substack and haven’t really given the whole pricing strategy much thought.
I did however today decide to do something «crazy». I created a special discount, for annual subscription and it needs to be redeemed by jan 1, 2025. With that you get 90% off forever.
My purpose is simply to attract those who want to give it a go and support the small newsletter and see where it goes, without going broke.
Will be interesting to see what happens. I have posted about this today.
Clever or not, I guess time will tell 😇
I offer something similar but it’s not a huge savings, so I like how you delve into it deeper. This was really helpful. Thank you!
fantastic, thank you 🧡
Thank you for that! For us who are starting now it is really helpful! Many thanks, Claudia🙏🏻😊
so glad it helps!
Woohoo!!!
Claudia Faith!!!
🙌
Prices of popcorn at the cinema:
Small - 4
Medium - 6.50
Large - 7
It's price anchoring because you get maybe triple the amount of popcorn for less than double the price, but also "decoy" pricing because all they really want you to buy is the large, the small and medium are decoys. 7 for popcorn that cost them less than 0.5 to make is still a hefty margin.
That's why I bring my own snacks to the cinema, its actually not illegal, even though it feels like it is.
I haven’t read your article yet but I’m intrigued with Price Anchoring. So I placed it in my must read folder. Thank you for sharing 🙂
Thanks for being interested in it:)
I think it might be different on the fiction side of the coin. I've been doing this for quite some time, and my growth has been at a dead turtle's pace. I charge $30 for a yearly Subscription, and $10 for monthly...and crickets. I even had a summer blowout sale at $6 for the year, and still...crickets. I could understand if the writing I offered was shit, but it's not. It's just that people feel they should not have to pay for fiction because fiction just offers stories, and everything else, gives value for the dollar. A little strange I think.
I didn’t know there was a name for it. I just recently turned my paid subscriptions on and actually set it up that way.😂 thank you for sharing this! Very helpful info!
hah oh really? how funny, yes there is :D
The anchoring suggestion is a good fit with my plans to structure more courses here in time. I have a number of old ones on Teachable that I've considered migrating, and a high monthly rate is a good counter to a "clean out the cupboard then cancel" approach that I've thought some content pirates might have.
yes, I am also considering an approach like that.. let’s see :)
I’ve been thinking of a hybrid model—have pricing kick in on posts a certain age. I’m also waiting to see if I can get a book deal.
ah yes, I also like to paywall some of my older things that performed well :) but you could still think about price anchoring as overall strategy
Will do. Does it keep the nut jobs away? I’d really like to get rid of a few of my readers, the ones that insist on asking personal questions.
yes, once you block them there is no more interaction :)!