Pricing is the most powerful lever in your business. A 1% increase in price can lead to a 12% increase in profit. Yet, most founders just copy their cheapest competitor.
The 3 Pricing Frameworks
| Method | Best For | The Formula |
|---|---|---|
| Value-Based | High-ROI Tools | Price = (Value Created x 10%). |
| Tiered (Good/Better/Best) | Most SaaS Apps | 3 Tiers: $29 / $79 / $199. |
| Usage-Based | Data/API Tools | Pay per credit or successful action. |
🛑 Comparison: Cheap vs. Premium Strategy
| Metric | The "Cheap" Route | The "Premium" Route |
|---|---|---|
| Customer Quality | High support needs, high churn. | High respect for your time, low churn. |
| Brand Perception | Seen as a "commodity." | Seen as a "critical tool." |
| Marketing Budget | You must be massive to survive. | You can survive with 100 loyal fans. |
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