Keep one-time offers at 25-33% off; save big sales for Black Friday

Joseph Choi[laughter] And it's like, yeah, and you're basically just Like you have one more try at getting them to see like, oh, this this price It's the same price, but it's framed differently. And then if they still say "No, thanks," then you give the discount. Um and then so for the 33% discount, is there a reason why it's 33?

Jonathan ParraI just like to see something that shows the user value. Um so you could go between 25 and 33, I think, in most of your one-time offers, because a lot of the times you want to save your really big and juicy sales for something like Black Friday or Cyber Monday, and you don't want to, you know, show that you're discounting the product way too much in just a regular test, because you do want to save those sales for Black Friday, Cyber Monday,

Jonathan Parraor at a certain point, if you if you do too much, you know, you run too many sales and you you have users that open paywalls and they see this and close it for some kind of freemium app, for example, and, you know, they use the app or you you can have them use the app without uh signing up and they have some kind of rate limit, they get used to seeing that, and it kind of cheapens the product a little bit.

Jonathan ParraSo, um especially for the larger apps, I don't like to run large discounts, because I don't want to cheapen their brand. So, in in this case, 33% is just arbitrary for um, well, let's see. You know, $29.99 is actually like what a lot of these AI wrapper apps use as their yearly. Um and so everyone just started copying each other. And uh this is just one of the the prices that the market kind of settled on where you can still be profitable and have good margins, um and it's still fairly affordable to the user.

Joseph ChoiOne thing that this pricing like made me think about is ChatGPT and Claude benchmarks, Mhm. because those cost $20 a month, which is a lot more expensive than this, which is like $40 a year. Do you have any insight into why consumers are willing to pay so much less for standalone apps?