Process
A four-step price testing sequence for startups
A four-step sequence for setting a startup price. Talk to 10 to 15 buyers to narrow the range, run a price test with about 30 target buyers, check the result with a prepayment, letter of intent or paid pilot, then change the price and watch the next cohort. It moves from cheap stated intent to real behaviour. Koji can run step two as an interview price test that asks why after each answer.
Where this appears
What's in this process
- Narrow the range in conversation: Talk to 10 to 15 buyers about what they pay today and how they buy.
- Run a price test with about 30 buyers: Use a ladder of 5 to 7 prices around the range you heard. Read the curve and the reasons.
- Check it with a commitment: Ask a few warm leads to prepay, sign or start a paid pilot at the price the test points to.
- Ship it and watch: Change the price for new customers and track conversion and churn for the next cohort.
Use this image
Free to use in your docs, decks and posts under CC BY 4.0, as long as you credit Koji with a link to this page. To embed it, paste this into your page:
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<a href="https://www.koji.so/visuals/startup-price-testing-sequence"><img src="https://www.koji.so/visuals/startup-price-testing-sequence/startup-price-testing-sequence.png" alt="Process showing four steps for startup price testing: narrow the range in conversation, run a price test, check with a commitment, then ship and watch." width="1200" height="630" /></a>
<p>Source: <a href="https://www.koji.so/visuals/startup-price-testing-sequence">A four-step price testing sequence for startups</a>, Koji</p>
