Recovering from a pricing mistake ad Entrepreneur

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Recovering from a pricing mistake ad Entrepreneur

One of the scariest things about a subscription model is pricing. If you make a mistake on pricing a widget, you can easily make a correction. But if you have a membership model and set the recurring fee too low, changing the price is a big deal and can be perceived by your members as breaking an implied promise. After all, it's a forever transaction, and the buyer has gone from consumer, evaluating options, to member, who has accepted your terms and is no longer evaluating. So, if you make a change, you risk your transforming your member back into being a consumer, and then, they might cancel.

Not only that, but when they cancel, they might also feel cheated, so they might complain to their friends or on social media. If I can give you any advice, it'd be this. Try not to make a mistake. Make sure you're pricing high enough to cover your overall costs while providing enough value. Hopefully, there's an intersection there. If you provide lots of value, you should have a bunch of different price points that are profitable for you.

Source: https://www.linkedin.com/learning/creating-a-membership-based-business/recovering-from-a-pricing-mistake