Has anyone ever complained to you that your pricing is too high? If not, then potentially your pricing is too low.
Pricing is tough. So many companies I have spoken to, especially in the SaaS space have arbitrarily chosen their pricing – often just reflecting on competitor pricing.
But there is an opportunity to leverage paid advertising to stress test your pricing and also make your ads more profitable.
Let’s say you are spending €100 per week on ads and you are getting 10 sales to the value of €1000. A marginal increase in pricing can stress test your model to see if the same €100 results in 10 sales at €1200 for example.
You can use this to experiment with your pricing to help find your ceiling and maximise your ROI from paid ads.
Have you got questions on this? Let us know in the comments below and we can help others on their learning journey too.