Did I price my LTD too high? $499 for every 5 users

[clmorgan]

This is the before (1) and after (2)

Before:

https://imgur.com/3FqG8tZ

After:

https://imgur.com/3YA30rq

Initially I thought we'll sell $499 plans (lifetime access) for every 5 users. So was aiming at teams of a few people, or more.

CONTEXT: We've made an eSignature tool (DocuSign alternative) and we're planning to launch with an LTD for traction.

But after an email blast and 1-2 weeks, we've only gotten 1 sale

Did we price it too high? I'm thinking about switching it up and selling individual plans, at a lower price. What do you guys think?

I'd show $59 per user as a public price, but offer discount codes wherever I post (Twitter, communities, etc) - so that it's $39

Anyone who's sold LTD plans in the past who can chime in?

 

[rnblessings]

@clmorgan I can speak only as a potential user: I don’t trust startup services to be able to sell me something that is truly for lifetime - so I think this may be a complex assessment. And I’m probably thinking tech will change anyway. Therefore I’m thinking this purchase is for a couple of years max. I’d be comparing the cost directly with docusign and to get me to switch would take a >30% discount or a >20% lower price if I’m buying fresh to take a risk with an unknown company. Just my gut feeling. I’d just copy docusign pricing for now (with the discounts I mentioned) and do some price testing with potential users.

 

[verasoldmine]

@clmorgan Did you get more people signing up for the free plan though? You have a $499 price anchor next to a similar offering for $0, so unless team access is worth much to the recipient it’s too big of a swing. I’d remove the $0 offering from the LTD.

Also very much agree with the other commenter that I’m put off by LTDs from startups. Most startups fail. Deep discount an annual or make up a 3yr plan or something. Lifetime is scary

In fact one of my touch points on demos for our organizational customers is the realistic understanding that they’re 99% going to be around longer than me so this is how we can transition if you don’t want to use our services anymore. It sounds like an antisale but builds trust and confidence in our value prop.

 

[verasoldmine]

Also team plans usually require more buy-in so give it a minute

 

[gregoryt89]

@clmorgan Why would you price like this forever? On a long enough timeline 100% of your users will cost more than they earn you.

Typically you want super high retention and low churn, but the way you've set this up, your incentives are to encourage people to buy once, and then churn out.

You have overhead, infrastructure, and support costs.

Idk what to say other than this makes zero business sense unless you plan on scamming people.

 

[laurawend]

@clmorgan Hey! I saw your page and when compared to DocuSign’s pricing I don’t know how are you going to support and grow this. I mean DocuSign’s pricing is what it is but it’s also proof that people are willing to pay as much or else they would have lowered it a long time ago.

I empathize in the sense that gaining traction today is tough but don’t go too low or else it may send a wrong message. @danny4mission put it nicely, pricing closer to DocuSign’s but lower to give clients a reason to move.

You may have a close enough or maybe even a better product but the growth is still going to cost you just like it does to DocuSign.