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    The 5 Proven Pricing Strategies You Need for Your HubSpot Business

     The 5 Proven Pricing Strategies You Need for Your HubSpot Business

    Intro : 

    If you’re not sure what price to charge for your HubSpot business, you’re in luck! This article will walk you through 5 proven pricing strategies that are sure to help you figure out how much to charge. No more sweating over the amount of money you can charge your customers; these strategies will get you back to focusing on what matters most-serving your customers with amazing products and services!

    Strategy 1: Value Ladder

    It's not about being cheap; it's about being fair. Value laddering is exactly what it sounds like—price your products and services in a way that allows customers to choose between two levels of pricing based on what they can afford. That way, no matter which option they choose, you win: You're always getting paid more than you charge, while still treating people fairly. This may seem counterintuitive, but it works—people are comfortable with tiers (like Amazon Prime or Gold Membership at Costco), so use that psychological shortcut to your advantage! I recommend using a tiered subscription model as opposed to fixed pricing: With fixed pricing, there’s a very clear price anchor that everyone looks at when they’re making their purchasing decision. Tiered models allow you to introduce multiple price anchors into your prices and make it easier for buyers to justify buying from you instead of someone else. A good value ladder would be $0-$49/month, $50-$99/month, $100-$149/month, $150+/month.

    Strategy 2: Pricing by Personas

    In a B2B world, it’s helpful to have several personas of ideal buyers. By pricing according to the persona (rather than role or size of business), you can better tailor your offering and make sure it meets your customer’s needs, as well as price in line with their value. For example, imagine two different sales rep personas: John Doe is a Fortune 500 company buyer while Jane Smith works at a mid-size company. Because each is looking for very different things from a HubSpot solution—even if they both use similar features like team collaboration tools or chat—you should develop different plans that fit each audience’s needs. That way you can increase overall customer lifetime value and help all customers achieve their goals faster. So if you know your customer personas are Sales Rep A and Sales Rep B, then create two different plans. The first plan could be an entry-level version aimed at helping Sales Rep A build their pipeline by leveraging easy-to-use features like templates, lead scoring, and email automation. And once they’re further along in their growth cycle, switch them over to Plan B which includes more robust features like CRM integration and customized reporting capabilities. This allows you to ensure new customers are onboarded correctly based on where they are in their buying journey so they can get maximum value out of your product faster!

    Strategy 3: Development Costs

    When building your business, you’ll encounter many costs. When considering pricing, it’s important to understand how much it will cost to offer a service. Use these simple calculations to figure out what each component of your offering is costing you: Material Costs + Labor Costs + Fees (These include any permits or licenses you’ll need as well as any other expenses.) Total that number and add 30% to it—this will give you an estimate of what each item costs. Then, divide by either servings or units—whichever way your customers are paying. For example, if your customer pays per serving, divide by servings; if they pay per unit, divide by units. This will give you a base price for each serving/unit.

    Strategy 4: Custom Development

    Custom development pricing depends on your specific product. Custom development is where you're tasked with creating a product or service that doesn't already exist within HubSpot. This can include everything from developing new functionalities within an existing solution to creating a brand new product that will be sold directly to customers (like a SaaS or mobile app). In these situations, it's critical to understand how many hours are required to complete each task and how long they'll take. For example, if you know that it takes roughly 10 hours to develop a feature, then you should charge around $1,000 per feature. If it takes 20 hours, then charge $2,000 per feature. These numbers aren't set in stone; rather they should act as guidelines for what fair market value looks like in your industry. Be sure to factor in additional costs such as design work, project management, etc. when calculating your final price. Once you've determined your hourly rate and estimated number of hours needed to complete a project, multiply those two figures together to get your total price tag. The next step is estimating how much time you'll need for other tasks like marketing and sales efforts (which we’ll cover below). Then add all of those costs together to get an accurate picture of what it will cost you to build out your custom solution—and don’t forget about any ongoing maintenance fees!

    Strategy 5: Staying Flexible

    It's a good idea to vary your pricing at least once every year. A pricing change could be as simple as adjusting your existing packages—perhaps adding a few new options. Check out what competitors are doing and always keep an eye on consumer behavior, too. You may have to get creative when it comes to making money from your service; maybe if you can't charge more, you can offer better customer support or a greater variety of services with your product (like OfficeMax). The key is that you stay flexible—don't make it impossible for customers to pay but also don't put yourself in a situation where people would choose not to do business with you because of price alone. Always be willing to negotiate.

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