GTM Sauce

GlamUp · B2C · AI makeup glow-up app

Triple the weekly price from $3 to $9

Conversion rate went up despite the 3x price

Workedpricing

What they did

Raised the weekly subscription from $3/week to $9/week (weekly and monthly plans only, no annual).

What happened

Conversion increased after tripling price; guest's theory: demand for an app you want is inelastic and higher price signals value.

In their words

Nicole Cheung - she makes $400k/mo from ai apps (while in college)

Play from 22:28
22:23

Nicole CheungI don't think we had an annual plan. I think it was only weekly and monthly.

22:28

Joseph ChoiOh, I see. Okay, weekly and monthly. And then Yeah, it's very It's a very like low price point, $3 a week, and then $9 a week. Yeah, one of the things that stuck out in the in the playbook doc was like when you raised your price from 3 to 9, like you tripled your price, it somehow increased your conversion rate. Like, how does that work?

22:49

Nicole CheungI have no idea. But you know what's something really crazy? The new app that I built that I launched 3 months ago, we just raised the pricing by 20%, and the conversion also increased. And I think it's because it depends on the demand. Maybe, like I'm like I'm kind of just like talking out of my ass right now, but like I feel like when you find an app that you really want to use, your demand for it is relatively inelastic. Seeing that like maybe seeing the price higher will bring the perceived value of the app more, cuz maybe they're like, "Oh, this is so cheap. There's no way, you know, they can do this or do that."

23:26

Nicole CheungMaybe that's one way of thinking about it. But I see it not just from GlamUp. I see it from like the the current app that I'm building as well.

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Tags: price-increase, weekly-plan