How to Improve Your Pricing Strategy Using Price Segmentation with Matthew Barnett

Why you have to check out today’s podcast:  Understand how personalized customer onboarding converts and retains more customers  Find out the different pricing metrics Bonjoro used in coming up with good pricing  Find out how market segmentation helps in coming up with good pricing    Matthew Barnett is the founder of Bonjoro and head honcho at Verbate. At the same time, he is also a contemporary artist.  In this episode, Matt shares how Bonjoro uses different pricing metrics to come up with product pricing, and market segmentation helps them in deciding price.     “I think especially early companies, think about what you want to price and price triple.” – Matthew Barnett    Get COV’s Pricing Metrics:  The Most Important Pricing Decision in a Subscription Business Course at https://www.championsofvalue.com        Topics Covered:    01:04 – What does his company, Bonjoro do and what unique Pricing strategy does it have  02:06 – One important message Bonjoro is driving at in sending videos rather than emails or text to customers  02:22 – Pricing the Bonjoro way  07:16 – Making decisions on usage data  12:51 – Do pricing metric and value metric mean the same thing  14:21 – How did Bonjoro come up with all the pricing metrics  17:55 – Why Bonjoro don’t do Options for now  22:18 – How to go about Options in Pricing  25:32 – Looking at Slack and Zoom’s Pricing model  32:07 – Why you need to give value at the onboarding of customers stage  33:52 – Thoughts on price endings  37:19 – Grandfathered pricing  40:54 – Matt’s best pricing advice      Key Takeaway:    “At certain points on the customer journey, like this face to face stuff actually stopping for minutes and being like, it’s me, I’m a human. That’s what it’s about.” – Matt Barnett  “Some of the sides of pricing is also packaging.” – Matthew Barnett  “I’m at the point where I’m like, I kind of hate paying them but I keep paying it. So that to me is as a business owner I look at that and go that’s good pricing because I hate it enough to leave, but they extract every single dollar from me that they could possibly get like that.” – Matthew Barnett  “I think given the fact that quite early in the company, I mean three years to me it’s still early, it says of a product. So I think one of the things here is to get to the stage where the three if we end up with the three plans or all of the four plans for the three. Those are the right price to value match as a base and then we start to add things on there that as far as segmentation. I actually do think higher plans honestly need a bit more bolstering in terms of feature sets.” – Matthew Barnett   “It’s much easier to start high and then go, oops, come down than it is to go double your price and the next day. And I was like, hang on a minute.” – Matt Barnett  “ I mean especially early companies always, always price too low. We are one of these. We did it too. I think if people don’t push back and say, ‘Hey, your price is too high.’ If no one ever says that, your pricing is too low.” – Matthew Barnett    People / Resources Mentioned:    Slack  Zoom  LinkedIn    Connect with Matthew Barnett:  Bonjoro.com  LinkedIn    Connect with Mark Stiving:   Email: [email protected]    LinkedIn    Twitter