What's Your Premium Plan?

The folks at 37 Signals share a pricing lesson:  Don’t forget the premium plan.  Here’s what they have to say:

We launched DropSend (a service for sending large files you can’t email) last November and it’s been ticking along nicely, picking up about 3,500 users per month. 

We always planned on offering a premium version for businesses that was brandable and multi-user, but we couldn’t get it done in time for launch, so we decided to launch that feature later. 

Well, two weeks ago, we finally finished the new DropSend Business Plan. It’s $80 more than the Pro plan ($19 vs. $99), and we were worried that it might be a bit too expensive. Holy crap, were we wrong.

In two weeks, we’ve increased our total revenue by 30%! Two weeks. As I write this, I’m still finding it hard to believe. The Business Plan is now responsible for the lion’s share of our revenue from DropSend. 

What we learned from this is that people will pay for quality. Offer them something really good, and they will go for it. Our premium plan is aimed at businesses who have the need for a high-end solution, and of course, they are the ones who can afford it.

If you are struggling with pricing, think about a “premium” plan that includes extras your “regular” plan does not.  Give your clients a choice.  You may be surprised at the plan they choose.

Previous
Previous

Illinois Bar Journal Article

Next
Next

links for 2006-05-13