Adam Wathan and Steve Schoger spend 6 months writing down everything they know about design. Their ābookā sells for $79.
Believe it or not, both prices make perfect sense.
š„ A lesson in pricing
THREAD ...
Adam Wathan and Steve Schoger spend 6 months writing down everything they know about design. Their ābookā sells for $79.
Believe it or not, both prices make perfect sense.
If he raises the price to $30 they wouldnāt think twice before substituting his book for one of the many cheaper alternatives on Amazon.
They've all been following the Twitter tips, watching the screencasts, reading the Medium posts.
In their minds, there are no substitute resources available.
In the case of Adam and Steve, all the way up to $79.
As the diagram shows, a 8x price increase ($10 to $79) results in just a 2x drop in books sold (20k to 10k) and 4x more revenue (area of the rectangles).
You can't just sell an e-book for $70+. People are anchored to what they're used to paying on Amazon.
Well, they set up their own website, added in video tutorials, an icon pack, color palettes, font recommendations, a component library.
And then the context changed.
And they could charge whatever they liked.
And it was this package that they wanted people to buy.
The question was how could they present it in such a way to make it appear more compelling?
It doesn't feel right pressing the āBuy Nowā button on the lower tier.
āIf you want people to buy the more valuable package why not make the discount more compelling.ā - @adamwathan
āThe Complete Packageā infers that if you choose anything less you're missing out.
It could just as accurately be labelled āThe Bonus Packageā but that wouldn't have the same psychological impact.
78% of total purchases (6765) favoured the higher tier (as of Jan 10, 2019).
ā¢ Identified that a hardcore audience called for high pricing
ā¢ Escaped the dogma of e-book pricing
ā¢ Packaged the higher tier in a more compelling way
and Refactoring UI ended up grossing over $1.35M.
It's a great episode which I'd certainly recommend.
If you like the threads sharing with friends or following
@GoodMarketingHQ is appreciated ā¤ļø
Thank you to @EmailOctopus for sponsoring
Over and out - Harry š
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But it has the potential to be something even bigger: the Netflix of productivity.
Our report and a thread š
We believe @seqouia and @steadfast got a good deal buying into Zapier at $5B.
We value Zapier at $7B based on:
- 30-50% YoY growth over the next five years
- Zapierās monopoly status in the solopreneur/SMB market
- 30-40% YoY growth of no-code TAM
No-code is huge and growing, but as @edavidpeterson has written, no-code is about more than tools: itās about a philosophy that emphasizes interoperability and customizing your software to your needs.
https://t.co/UJY6BRtXwl
.@zapier enabled interoperability by building a solution to one of the intractable problems in SaaS: APIs that donāt talk to each other.
The product took off and hit $100M ARR in just 9 years, comparable to companies that have raised 100x as much money.
https://t.co/0Thk42eRpJ
Zapier was riding an explosion in APIs that started the same year they were foundedā2011.
Suddenly, every SaaS business wanted to offer its users extensibility, but not spend time figuring out what integrations to build or building them.
Thatās where Zapier came in handy.
But it has the potential to be something even bigger: the Netflix of productivity.
Our report and a thread š
We believe @seqouia and @steadfast got a good deal buying into Zapier at $5B.
We value Zapier at $7B based on:
- 30-50% YoY growth over the next five years
- Zapierās monopoly status in the solopreneur/SMB market
- 30-40% YoY growth of no-code TAM
No-code is huge and growing, but as @edavidpeterson has written, no-code is about more than tools: itās about a philosophy that emphasizes interoperability and customizing your software to your needs.
https://t.co/UJY6BRtXwl
Trying this on for size\u2026
— David Peterson (@edavidpeterson) January 14, 2021
\u201cNo code\u201d isn\u2019t a coherent category. It\u2019s a design philosophy.
But tools built with this philosophy in mind will be the biggest winners of the next decade.
Let me explain what I mean by way of analogy.
.@zapier enabled interoperability by building a solution to one of the intractable problems in SaaS: APIs that donāt talk to each other.
The product took off and hit $100M ARR in just 9 years, comparable to companies that have raised 100x as much money.
https://t.co/0Thk42eRpJ
Ever notice that Zapier is doing $100m+ and has no direct competition? Found their niche and crushed it \U0001f44c
— Tyler Tringas (@tylertringas) November 7, 2019
Zapier was riding an explosion in APIs that started the same year they were foundedā2011.
Suddenly, every SaaS business wanted to offer its users extensibility, but not spend time figuring out what integrations to build or building them.
Thatās where Zapier came in handy.
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Recently, the @CNIL issued a decision regarding the GDPR compliance of an unknown French adtech company named "Vectaury". It may seem like small fry, but the decision has potential wide-ranging impacts for Google, the IAB framework, and today's adtech. It's thread time! š
It's all in French, but if you're up for it you can read:
ā¢ Their blog post (lacks the most interesting details): https://t.co/PHkDcOT1hy
ā¢ Their high-level legal decision: https://t.co/hwpiEvjodt
ā¢ The full notification: https://t.co/QQB7rfynha
I've read it so you needn't!
Vectaury was collecting geolocation data in order to create profiles (eg. people who often go to this or that type of shop) so as to power ad targeting. They operate through embedded SDKs and ad bidding, making them invisible to users.
The @CNIL notes that profiling based off of geolocation presents particular risks since it reveals people's movements and habits. As risky, the processing requires consent ā this will be the heart of their assessment.
Interesting point: they justify the decision in part because of how many people COULD be targeted in this way (rather than how many have ā though they note that too). Because it's on a phone, and many have phones, it is considered large-scale processing no matter what.
It's all in French, but if you're up for it you can read:
ā¢ Their blog post (lacks the most interesting details): https://t.co/PHkDcOT1hy
ā¢ Their high-level legal decision: https://t.co/hwpiEvjodt
ā¢ The full notification: https://t.co/QQB7rfynha
I've read it so you needn't!
Vectaury was collecting geolocation data in order to create profiles (eg. people who often go to this or that type of shop) so as to power ad targeting. They operate through embedded SDKs and ad bidding, making them invisible to users.
The @CNIL notes that profiling based off of geolocation presents particular risks since it reveals people's movements and habits. As risky, the processing requires consent ā this will be the heart of their assessment.
Interesting point: they justify the decision in part because of how many people COULD be targeted in this way (rather than how many have ā though they note that too). Because it's on a phone, and many have phones, it is considered large-scale processing no matter what.