i have Thoughts on this
.@spencerfry’s next tweet shows they offer physical schwag as an incentive. which is cool.
but for many of us with a tiny team, far worse than a discount. it takes time to package, ship, even drop ship. time that isn’t actually producing further value eg product work
but for many of us with a tiny team, far worse than a discount. it takes time to package, ship, even drop ship. time that isn’t actually producing further value eg product work
at the same time, i’m a jealous bitch with SaaS revenue, i want high LTV. hate scrounging with cheap people. our products cost more than competitors. we do premium positioning.
we’ve accrued ~ $4.2m so far from our SaaSes
we’ve accrued ~ $4.2m so far from our SaaSes
for @freckle, we don’t have holiday sales or other promotions
EXCEPT
if you pay for a year in advance. if you wanna get a discount, you gotta do something that’s really good for us: pony up a large amount now.
you get “a free month” for your trouble, plus a year end deduction
EXCEPT
if you pay for a year in advance. if you wanna get a discount, you gotta do something that’s really good for us: pony up a large amount now.
you get “a free month” for your trouble, plus a year end deduction
the price is always the same. it’s not seasonal. we just promote it seasonally, because biz people REALLY respond to “last minute tax deduction.”
cuz i totally agree with spencer that discounts aren’t sustainable and also with patrick that it
- lowers LTV (sad!) and
- teaches people to expect discounts and wait for sales (bad!!)
- lowers LTV (sad!) and
- teaches people to expect discounts and wait for sales (bad!!)
howwweverrrrrrrrrrrrrrr we’re offering 6 free months of our new SaaS, @pepdoesit when you buy my $99 black friday bundle
am i a hypocrite? 🧐
am i a hypocrite? 🧐
discounts are a tool. specifically, discounts are a sledgehammer.
easy to swing and do big changes quickly
usually for profits, you want an x-acto knife: very tailored, special incentives
but! sometimes a sledgehammer is the right tool for the job
easy to swing and do big changes quickly
usually for profits, you want an x-acto knife: very tailored, special incentives
but! sometimes a sledgehammer is the right tool for the job
discounts can open a lot of pockets, very quickly, in a single swing. more efficiently than gently sawing on individual pocket seams with an x-acto knife
1. Pep is new.
2. i have a really incredible marketing plan but have been sick for a year, haven’t been able to implement yet
3. early adopters have innate value that’s hard to price - from feedback, product evolution, to word of mouth
2. i have a really incredible marketing plan but have been sick for a year, haven’t been able to implement yet
3. early adopters have innate value that’s hard to price - from feedback, product evolution, to word of mouth
4. most importantly, i’m not offering a discount on Pep to people who are actively thinking about buying Pep
it’s a way to cross-promote with my other biz.
it’s a way to cross-promote with my other biz.
i love discounts: they work, they’re easy as shit, don’t create extra work, and if you think about it, cheaper for your CAC than advertising
you just gotta know the cost-benefit going in.
you just gotta know the cost-benefit going in.
