Based on our book, Price to Scale, you should approach early discounts with nuance rather than offering blanket, significant discounts that could later anchor customers’ expectations at a lower level.
Here are the key takeaways:
• Segment and Tailor: Our book emphasizes segmenting your customer base. Not every early adopter or beta user needs the same discount. Instead, target discounts strategically based on the customer’s usage patterns and potential long‐term value. For instance, rather than universally deep discounting, consider offering a better option (such as an upgrade) or a smaller discount tied to additional commitment (e.g., signing up for a longer term).
• Transparency on Future Pricing: Remain upfront about possible changes in pricing and packaging down the road. By positioning early discounts as temporary or tied to specific conditions, you reduce the risk of setting an expectation that the lower price is permanent. This approach not only improves customer perception but also helps align internal teams—ensuring finance, sales, and product teams are comfortable with the tradeoffs.
• Controlled and Iterative Launch: When launching a new product, it’s particularly important to test various pricing levels while managing expectations. A controlled launch, as discussed in our book, allows you to learn from beta user reactions and fine-tune your pricing structure before a broader roll-out, mitigating the risk of customers circling back to expect permanent discounts.
In summary, rather than giving significant universal discounts that might anchor low expectations, use targeted, condition-based offers and clear communication about pricing evolution. This strategic approach enables you to gain traction while protecting long-term pricing integrity.