Ask 37signals: How did you come up with pricing for your prod...

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Saved by 3 people (-1 private), first by anonymouse user on 2008-10-10

Suhit_a on 2008-10-16 - Tags pricing , strategy
Stavata on 2008-10-12 - Tags pricing , 37signals
Kenny3 on 2008-10-10 - Tags 37signals , product , pricing

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When we first priced Basecamp in Feburary 2004 the plans were $9, $19, $39, and $59. There wasn’t much science behind it. We asked ourselves a couple questions:

1. What would we pay?
2. What numbers feel right?

Highlighted by suhit_a

There’s a big psychological and emotional side to pricing. A friend who worked at Wal-Mart once told me that Wal-Mart never prices anything ending in a 9. They always end in 8 (or 6 or 4) or something other than 9. They want the customer to know that Wal-Mart is always working hard to shave an extra penny off the price — hence the uncommon 8 not the familiar 9.