The speaker talks about how pricing can make or break a subscription service and shares his own mistake of charging too much for his service, which turned away potential customers. He recommends lowering the price to make it an impulse buy, which can be used to get customers into the funnel for more expensive upsells.
Having both a cheaper front end product and a more expensive back end product are crucial for a successful business strategy. It allows for a larger customer base while still making significant profits from a smaller number of high paying customers.
The guest speaker emphasizes the importance of proper pricing when it comes to software. He suggests that one should always charge more than they think and shares his experience of doubling and more than doubling prices on software companies.
The value of a product is often underestimated and most customers are willing to pay much more than expected. By increasing efficiency in customer acquisition and raising the price of a product, a business can create a successful and lucrative model.
In this episode, the guest shares his insights on how easy it is to increase revenue without putting in any extra effort, simply by raising the prices of your products effectively.
The hosts discuss the importance of leveraging a business and raising prices, citing examples of how they've been able to make significant increases in revenue with minimal effort. They also discuss potential future plans to buy more software companies and 10X their prices.