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Asked

What should I price my product at for launch day?

Hey ! 😊

I'm not that far from launch day with my app #mistral 
Mistral provides pre-made TailwindCSS blocks to kickstart all your projects. No JS/no style.css. You can mix them together, change the colors and the dark mode to make them unique. 
If you go on WIP on a daily basis, you probably already seen my Todos! 

Anyway, the business model is simple: I want to sell 'premium' pre-made blocks through Gumroad.
Once you bought it, you have unlimited and lifetime access to all the premium components I add.

I was thinking to sell the product at $39USD for the first buyers, and then $69USD. 
What do you think?

Florian ARGAUD
@icesofty

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Here's my rough process for figuring out pricing early on:

  1. Research what people are currently paying to solve the problem. This could be a competing product, labour hours times hourly rate in case my product automates manual work, etc.
  2. Price it a bit below that. How much depends on your situation, but the goal here is not to optimize for the most revenue, but rather get as much information as you can. A lower price means you'll get more customers and thus feedback (although if the price is too low you might get feedback from the wrong customers).
  3. Increase the price over time and roughly keep track what it does to your conversion rate. Stop increasing until you've found the sweet spot.

In your case TailwindUI is a competitive product priced at $150-$250. They have a stellar reputation though being the makers of TailwindCSS. Pricing below them which you're doing now is probably a good idea.

On the other hand though, if you count the development hours saved times the average hourly rate, then you can argue for much higher prices. But yeah TailwindUI kinda anchors people to a lower price point.

Personally I'd try and differentiate yourself more from TailwindUI (or if you already do, communicate that better) and focus on a high-value niche such as e-commerce or enterprise. If you go niche you no longer compete with TailwindUI plus if you focus on the right niche you might be able to charge significantly more.

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Florian ARGAUD
@icesofty

First, thank you very much for your post.

Hmm, I can definitely focus my product on a Niche.

I created Mistral CSS because as a Maker/Dev I always spend way too much time creating every component for my products, and I always create the same types of components (Cards, Contact form, Gallery, etc... ) So, I've built this tool to make my life a little bit easier and to kickstart all my future products.

I should definitely re-focus my communication on the makers and bootstrappers niche:

"For the Makers,
By a Maker."

Again, thank you @marc

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Thanks, Marc for sharing your thoughts that interesting!
@icesofty maybe you can put a special price for more users at the start and then improve the verbatim with their feedbacks and then upper the price!
I agree with @marc have a cheaper price can help you in many ways!
You can get many customers who cannot pay the higher price who are already ready to buy!

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