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Any advice for creating a pricing strategy for a value-based B2C subscription product for a brand new company?

I know what my competitors and similar products are charging, but I'm trying to figure out how to estimate conversion, churn, and customer lifetime for my product. We are a brand new company (so no existing branding or customer trust), we are B2C in the healthcare & fitness space, and we have a value-based product - i.e. not media streaming, or physical goods - like Medium. Any thoughts or resources about how to approach this analysis would be helpful. Thanks!
1 Answer
Nate Franklin
Nate Franklin
Hex Head of Product MarketingApril 25

Let me preface my response and say that B2C is not the bulk of my experience, but here's how I would approach it.

You have to talk to customers. I would start by trying to understand what customers alternatives are to your product and how much time, energy and of course $$ it costs them. That's a good way to think about a starting place. Then running a pricing survey and ultimately a price test is the way to go.

Depending on your product, having multiple levels will make sense - but you probably don't want to start there. That's something you grow into to capture customers at different willingness to pay.

Regardless -- I highly recommend following Reforge's pricing strategy -- this is honestly the first place I'd go. https://www.reforge.com/previews/product/pricing-strategy

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