In my experience it works to get an initial boost in sales, but I'm not sure about the long-term effects. It might burn any customers who missed out on the deal and would feel they overpay when they need to pay the regular price. I used it for a software bundle which was more of a flash sale (only available for 24 hours IIRC).
IMO it also lowers your perceived product. You're giving me a 30% discount. Why? Is the product not worth the full amount? Do you need to offer a discount in order to get sales? These considerations depend on the type of product and target customer.
A common alternative I've seen is having "beta pricing" which is lower than usual, but comes with the caveat that some things are still a work in progress. The added benefit of this approach is that you can launch earlier.
Another approach is to offer a credit. For example offer $50 in credits which will be applied to the first couple of invoices. This is essentially an extended trial, but it's more tangible ($50 in credits sounds better than 2 month trial for $25/mo service). The added benefit here is that after the credits are used, you get 100% revenue from that customer. (versus offering a percentage discount)
In my experience it works to get an initial boost in sales, but I'm not sure about the long-term effects. It might burn any customers who missed out on the deal and would feel they overpay when they need to pay the regular price. I used it for a software bundle which was more of a flash sale (only available for 24 hours IIRC).
IMO it also lowers your perceived product. You're giving me a 30% discount. Why? Is the product not worth the full amount? Do you need to offer a discount in order to get sales? These considerations depend on the type of product and target customer.
A common alternative I've seen is having "beta pricing" which is lower than usual, but comes with the caveat that some things are still a work in progress. The added benefit of this approach is that you can launch earlier.
Another approach is to offer a credit. For example offer $50 in credits which will be applied to the first couple of invoices. This is essentially an extended trial, but it's more tangible ($50 in credits sounds better than 2 month trial for $25/mo service). The added benefit here is that after the credits are used, you get 100% revenue from that customer. (versus offering a percentage discount)