Product pricing strategy and testing

Develop optimal pricing strategy through research and testing. Pricing models: 1. Freemium: free tier + paid upgrades (good for viral/network effects). 2. Tiered: good/better/best packages (most common for SaaS). 3. Usage-based: pay per use/seat/transaction (aligns cost with value). 4. Flat rate: single price (simple but leaves money on table). Research methods: 1. Van Westendorp Price Sensitivity Meter (survey method). 2. Conjoint analysis: test feature/price combinations. 3. Competitor benchmarking: position relative to alternatives. 4. Customer interviews: value perception and willingness to pay. Testing approaches: 1. A/B testing: different prices to new customers. 2. Landing page tests: measure conversion at various price points. 3. Cohort analysis: retention by price paid. Optimization: raise prices annually for new customers, grandfather existing ones. Monitor churn rate changes after price increases.