Daniel Vassallo

Daniel Vassallo quotes on pricing

Building a portfolio of small bets. Quarter-time with Gumroad. Building userbase.com. Creator on dvassallo.gumroad.com. Ask me anything at daniel@hey.com.

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1

The science says that a $10 product sells significantly more when priced $9.99. Yet, I prefer pricing my products in multiples of $5. A $9.99 price makes me feel as if the seller is taking advantage of a bug in my brain. I prefer if my customers don't experience that feeling.

2

The Golden Rule applied to marketing: 1. Explain your product how you'd like products to be explained to you. 2. Charge others as much as you'd pay yourself. 3. Create the refund policy you'd want for yourself. 4. Don't do what you'd consider a nuisance.

3

How I set my prices: 1. I ask myself what I would pay based on the product description. 2. I ask myself what I would pay after using or consuming the product. 3. I pick the lower of the two, and lower it by another ~20%. And that’s the price I start with.

4

Your book might change lives, have the best testimonials, and perfect ratings. But there's a psychological limit to how much people will pay for a PDF. Pricing consumer products is almost all about psychology.

5

If you sell something for $45/month and you manage to add just ONE new customer every day, by the 5th year you’ll have a $1,000,000/year business.

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