There are different pricing strategies to pick from meaning that you as a business owner can select the best method for your business.
If customers are buying your products in plenty and you wish to reward them, you can go ahead and use discounts. There are endless possibilities when it comes to creating differences in pricing for different people.
Special Offers
You can choose to offer special process, coupons or discounts for everyone who buys your product or just a selected group. The common type of offers include:
- Time of Day Offers; under this strategy, you can offer different prices at different times of the day.
- Discount; you can offer discounts for specific services or subscription levels.
- Early bird; offer different prices for the first batch of subscribers or buyers.
- Loyalty Pricing; give out points to some of your loyal customers.
- Rule-Based; you can come up with your own pricing strategy for giving out discounts without the need to define it.
- Bundles; allow your customers to buy your products or services in bundles instead of buying separately. This is a way of saving costs.
- Preferred Customer; you can give discounts to customers who are continually supporting your business.
Selecting Your Own Pricing Model
You can allow your customers to select different packages or plan levels.
Tiered Pricing; you can allow your customers to choose different plans or packages with tier pricing, where they can make savings with more purchases.
Variant Pricing; set your subscriptions on different tiers. For example, a basic subscriber can only access a specific number of articles per month while a platinum user accesses everything. This option allows customers to choose what they want.
- Feature-Based Pricing; customers pay a fee for the service of their choice.
- Usage Metering; this method is similar to pay-per-view where the customer does not pay for the entire package just what they have used.
- Price Personalization; you can allow your customers to pick what they want and place their price.
- Elastic Subscription; allow your customers to upgrade or downgrade their plans.
- Just-In-Time Pricing; each piece has a changing price.
Auto Payment
This type of subscription charges the user according to used products. The money is automatically charged when it’s time to make a new subscription. It may also include payments for selected features outside the normal plan.
- Recurring frequency; these subscription types are billed monthly.
- One-time purchases; this amount is charged per-piece.
- Time-based; this is a special type of pricing that offers better prices for a specific time period.
Free Usage
These are subscriptions that don’t require payments. A free package can have certain restrictions and only after subscribing.
- Trials; allow your users to try a portion of the content before spending their money.
- Freemium; you can give out some of your content for free. This can be older content that is still of interest to some people.
Fees
Subscriptions can also come with added fees such as if a customer exceeds service limits
- Threshold-based billing; this means that when a set package gets purchased by your customer, they can have specific services amount and information related views. Once they cross the amount set, then they automatically enter the next pricing bracket.
- Overage Pricing; if your customer crosses the set limits, an additional fee is likely to be charged. For instance, if your mobile phone bill limit is crossed, then for each text or minute, you would be charged.
Things to Remember
- Go social; social media is an effective tool for reaching out and connecting with new people. With social media, it is easy to send out discounts and special prices.
- Terminations; you should know the reasons behind the termination of a subscription. Keep it simple for the customers and they will appreciate.
- Partner Pricing; you can hire someone else to keep track of subscription methods while you focus on other things.