Irrational Pricing

by PersuadeLab

Landing-ai is leaving money on the table!

Hi. Denizcan here.

It’s a great day.

My Newsletter got its first 50 subscribers in no time :) 🥳👑

Last week, Landing-ai had its launch on Product Hunt. It’s a pretty cool product, but Landing-ai is leaving money on the table!

It falls short about pricing.

This week, I will break down Landing-ai’s pricing.

 

Here’s how I would increase Landing-ai’s revenues with pricing:

 
 
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Landing-ai pricing

 

1- A ridiculously advantageous deal!

Each landing page should have only one key behavior, and this applies to pricing as well.

The most critical aspect of designing pricing is to offer a deal that makes potential customers feel ridiculously advantaged.

Before and after purchasing:

Before purchasing – This package is incredibly profitable, there must be a mistake here. (And I shouldn’t miss out on it.)

After purchasing – I won an amazing deal.

However, this pricing lacks a ridiculously advantageous deal. I believe this is the 3rd package because it stands out visually and appears larger, but it hasn’t been framed well enough.

You need to guide potential customers towards a package that you want them to choose. We should design all pricing and packages to serve this purpose.

I want potential customers to notice the best deal at first glance.

This is Choice overload, The paradox of choice.

We need to make their choices easier.

 

2- Frame it for a ridiculously advantageous option!

I would position the 3rd package as the most advantageous deal and build the hypothesis around it.

For this, I would have used the 2nd package as an anchor, but it hasn’t been utilized in the current pricing.

I would have limited the features of the 2nd package or improved the 3rd package to highlight it.

For example, I would remove the “Export code and images” feature from the 1st package.

I would offer the “Link to share with your team” feature only in the 3rd package. And I would provide more unique illustrations, logos, and templates in the 3rd package.

(Cognitive biases: Anchoring bias, reference point, and framing bias.)

 

3- What will I lose if I don’t buy this product?

Losses have a greater impact than gains.

This is the loss aversion cognitive bias. How much time will I lose if I don’t buy this product?

How much money will I lose if I don’t buy this product?

Or inspiration and productivity?

I would make it concrete and visualize it.

(Cognitive biases: Loss aversion, FOMO)

 

4- What should I compare it with?

Landing-ai claims that you can build an amazing landing page in 10-15 minutes.

I would show how much time I would normally spend building a landing page and I apply contrast.

This is the contrast and framing effect. The best way to perceive the value of something is to apply contrast.

(Cognitive biases: Contrast and Framing effect)

 

5- Incentives to make the purchase?

“$5 per variation” is well thought out, but it could be highlighted better.

Instead of “$5 per variation,” I would put a crossed-out $99. So, $59 instead $99. This is anchoring + incentives. $99 acts as an anchor.

And it makes $59 more reasonable. It makes the advantage feel even better.

(Cognitive biases: Incentives)

 

6- Why should I buy it now?

I want them to buy it now, not later.

And I need to prompt them to take immediate action. But why should they buy it now?

There is no reason to take immediate action with the current pricing. Unless you create a sense of urgency, they will postpone it.

Emotions and desires will fade, and they will make decisions based on logic.

I would create urgency. Instead of $99 (crossed out), I would offer $59. – I would present this as a limited-time offer only for the launch.

And I could use a countdown for this.

(Cognitive biases: Scarcity, Urgency, FOMO)

 

7- Make it visible to ease decision-making!

I’m designing to make it clear that the 3rd package is the best deal.

However, we need to simplify it further and make it more visible.

To enhance understanding, I would emphasize that the 3rd package is the “best deal” or “popular.”

(Cognitive biases: Attention bias and Salience bias.)

 

8- We don’t like ambiguity!

Landing-ai seems to handle this quite well.

They mention it under each package: “One-time payment. No subscription.”

Additionally, they provide information about the refund policy in the FAQ section.

(Cognitive biases: Ambiguity effect and Zero-risk bias.)

 

9- Highlight the Unique Value Proposition.

The CTA (Call to Action) looks good “Get my website now.”

I could make it more specific and include the unique value proposition.

For example, if I were positioning the product based on the unique value proposition of “speed,” I would phrase it as “Get my website in 10 minutes.”

 

Overall, the landing page answers the questions of what the product is and how it does it. However, it doesn’t explain the “why“.

To address this, convert the features into benefits and emphasize the benefits that users will gain.

With the pricing design I’ve created, over 70% of people would choose the 3rd package. (Most likely, the current pricing of the product has a lower and more balanced distribution.)

This means that Landing-ai is leaving money on the table.

3 things;

 

1- Let’s stay connected.

Linkedin: sanlavdenizcan

Twitter: sanlavdenizcan

2- Subscribe to the newsletter. (If you are not)

3-Get the pricing case study of your product – free

Tell me what your biggest pricing problem is. I read every reply.

 Good luck!

-Denizcan

You're leaving money on the table

I publish a few case studies every month. I choose a product/service in each case study. I explain how they will increase their revenues with their pricing strategies.

 

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