Corporate Client Success Manager

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4. Common Mistakes in Pricing Almost every brand with a membership model has made the following mistakes to some degree. The key issue with offering discount pricing is to figure out how much the user is willing to pay initially and how much they are willing to pay to continue to receive the service. Pricing discounts must be designed to have an impact on long-term value, that is, to allow customers to try the product under appropriate conditions so that they will understand the value of the product. Discounts work in the long run. For example, members who participate in a weight loss program will be willing to pay more to continue if they find that they have lost weight, but once the weight loss goal is achieved, they may need a larger discount to participate in a weight maintenance program.


Forcing members to order more products than they need Harvard Business School qatar whatsapp resource professor Clayton Christensen warns that disruptive innovation in the market will pose a risk to the brand. Someone can provide your benefits at your price. This is an example of value for money. For example, the model of the company was unique at the beginning. At that time, no other company offered online video calling services. But after a period of time, companies such as Google and Apple began to provide free online chat services. There were still some features that were better than these new companies, but the competitors' free service options caused users to continue to churn.


. Pricing based on the mistakes of a fanatic. A fanatic online music service provided a platform for people to share music online. The only problem was that it was illegal to do so. Eventually, it was forced to stop sharing. But by then, the company had become synonymous with free digital music downloads in the eyes of music lovers. . Pricing too low or starting out for free If you start out with a low price, people will get used to the low price. When you raise the price later, you must provide customers with more value and a reasonable reason to pay a higher membership fee.