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   How to run your first pricing experiment 🧪
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   Open for your pricing experiment playbook.
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                  Hey, it's Andrea here!
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                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  How've you been lately? 👀
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                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  I've been spending way too much time scrolling through Reddit (don't ask about my screen time lol), but I keep noticing the same thing popping up in r/SaaS and r/MicroSaaS...
                  <br/>
                  <br/>
                  Everyone's asking about pricing.
                 </p>
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                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  And honestly? I get it. SaaS pricing is a bit of a black box.
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  <br/>
                  Some of us price low to get those early sign-ups. Others look at competitors and play it safe. Or—and let's be honest here—most of us are just throwing darts at a board and hoping something sticks. 🫣
                  <br/>
                  <br/>
                  Here's the kicker though: there's probably a significant gap between what you're charging and what customers would happily pay.
                  <br/>
                  <br/>
                  So today, I want to share a framework for figuring out your optimal price point. No more guessing required!
                  <br/>
                  <br/>
                  Grab your caffeinated beverage of choice and let's dive in!
                 </p>
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                 <h2 style="margin:0; mso-line-height-rule:exactly; line-height:175%; font-size:22px">
                  Mind the [Pricing] Gap
                 </h2>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  Picture this: There's a gap between what you're charging today and what customers would happily pay tomorrow.
                 </p>
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                <img align="middle" alt="Value Stick - HBS" src="https://inboxflows.com/_/image/https%253A%252F%252Fbaremetrics.com%252Fhs-fs%252Fhubfs%252FValue%2520Stick%2520-%2520HBS.jpg%253Fwidth%253D1120%2526upscale%253Dtrue%2526name%253DValue%2520Stick%2520-%2520HBS.jpg/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZiYXJlbWV0cmljcyIsInRpbWUiOjE3NTM5NjUzOTcuNjUxMjE5Nn0:1uhSWT:5Ov80qE-cdMKa2cign0sFWEgzrelUCwrrvE68vmIsyU" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="560"/>
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               <div class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" data-hs-cos-general-type="widget" data-hs-cos-type="module" id="hs_cos_wrapper_module_17534157644343" style="color: inherit; font-size: inherit; line-height: inherit;">
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                 <p align="center" style="mso-line-height-rule:exactly; line-height:175%; text-align:center">
                  <em>
                   Source: HBS Online
                  </em>
                 </p>
                </div>
               </div>
              </td>
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               <div class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" data-hs-cos-general-type="widget" data-hs-cos-type="module" id="hs_cos_wrapper_module_17534148349901" style="color: inherit; font-size: inherit; line-height: inherit;">
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                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  This gap? It's probably bigger than you think. Many SaaS companies are pricing way below their customers' actual willingness to pay without even realizing it.
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  <br/>
                  Let that marinate for a second. You could be capturing more value from every single customer, but instead that potential revenue is just... sitting there. Waiting. Because you're too nervous to experiment.
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  <br/>
                  The only way to close this gap?
                  <span style="font-weight: bold;">
                   Price experiments
                  </span>
                  .
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  Let's go over how to best experiment in the next section together. 💸
                 </p>
                </div>
               </div>
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                 <h2 style="margin:0; mso-line-height-rule:exactly; line-height:175%; font-size:22px">
                  Your 5-Step Pricing Experiment Playbook
                 </h2>
                 <h3 style="font-size:17px; margin:0; mso-line-height-rule:exactly; line-height:175%">
                  Step 1: First, Make Test Pancakes 🥞
                 </h3>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  You know how the first pancake is always a little wonky while you figure out the right temperature? Same energy here.
                 </p>
                </div>
               </div>
              </td>
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                <img align="middle" alt="Dwight Pancakes" src="https://inboxflows.com/_/image/https%253A%252F%252Fbaremetrics.com%252Fhs-fs%252Fhubfs%252FDwight%2520Pancakes.gif%253Fwidth%253D480%2526upscale%253Dtrue%2526name%253DDwight%2520Pancakes.gif/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZiYXJlbWV0cmljcyIsInRpbWUiOjE3NTM5NjUzOTcuNjUxMzk2fQ:1uhSWT:aiVMM_WrMU44jScoOINsIjR_wu7TFKQ11ihfLSOxr7w" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="240"/>
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               <div class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" data-hs-cos-general-type="widget" data-hs-cos-type="module" id="hs_cos_wrapper_module_17534171741834" style="color: inherit; font-size: inherit; line-height: inherit;">
                <div class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text" id="hs_cos_wrapper_module_17534171741834_" style="color: inherit; font-size: inherit; line-height: inherit;">
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  In other words, don't roll out your new pricing to everyone just yet. Instead, test it within specific cohorts first.
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  Here's your game plan:
                 </p>
                 <ul style="mso-line-height-rule:exactly; line-height:175%">
                  <li>
                   Create variant landing pages with different prices
                  </li>
                  <li>
                   Run targeted ads to each variant (Facebook, Google, whatever channel is most impactful for your customers)
                  </li>
                  <li>
                   Track these cohorts like a hawk
                  </li>
                  <li>
                   Monitor ACTUAL conversions to paid—not just tire kickers
                  </li>
                 </ul>
                </div>
               </div>
              </td>
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            </tbody>
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            <tbody>
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              <td class="hs_padded" style="font-family:Lato, Tahoma, sans-serif; font-size:15px; color:#23496d; word-break:break-word; padding:10px 20px">
               <div class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" data-hs-cos-general-type="widget" data-hs-cos-type="module" id="hs_cos_wrapper_module_17534173048326" style="color: inherit; font-size: inherit; line-height: inherit;">
                <div class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text" id="hs_cos_wrapper_module_17534173048326_" style="color: inherit; font-size: inherit; line-height: inherit;">
                 <h3 style="font-size:17px; margin:0; mso-line-height-rule:exactly; line-height:175%">
                  Step 2: Track the Whole Journey, Not Just the Conversion
                 </h3>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  Too many founders pop champagne when someone clicks their pricing page.
                 </p>
                </div>
               </div>
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                <img align="middle" alt="champagne-pop-champagne" src="https://inboxflows.com/_/image/https%253A%252F%252Fbaremetrics.com%252Fhs-fs%252Fhubfs%252Fchampagne-pop-champagne.gif%253Fwidth%253D440%2526upscale%253Dtrue%2526name%253Dchampagne-pop-champagne.gif/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZiYXJlbWV0cmljcyIsInRpbWUiOjE3NTM5NjUzOTcuNjUxNTE3OX0:1uhSWT:UOiTAfli54Pt-9rEtcGBfpZfZ73drtRhXSum7ZQI3LU" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="220"/>
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               <div class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" data-hs-cos-general-type="widget" data-hs-cos-type="module" id="hs_cos_wrapper_module_17534180495767" style="color: inherit; font-size: inherit; line-height: inherit;">
                <div class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text" id="hs_cos_wrapper_module_17534180495767_" style="color: inherit; font-size: inherit; line-height: inherit;">
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  While I appreciate the enthusiasm, it's like declaring a movie a box office hit by how many views the trailer has.
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  These signals surely point to success, but you need to keep the whole picture in mind when debating fully rolling out a pricing change.
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  <br/>
                  Here's what you actually need to track:
                 </p>
                 <ul style="mso-line-height-rule:exactly; line-height:175%">
                  <li>
                   Pricing page views → Trial signups (
                   <strong>
                    the consideration phase
                   </strong>
                   )
                  </li>
                  <li>
                   Trial signups → Trial activation (
                   <strong>
                    are they actually using it?
                   </strong>
                   )
                  </li>
                  <li>
                   Trial activation → Paid conversion (
                   <strong>
                    show me the money!
                   </strong>
                   )
                  </li>
                  <li>
                   Paid conversion → 3-month retention (
                   <strong>
                    the honeymoon phase
                   </strong>
                   )
                  </li>
                  <li>
                   3-month retention → 12-month retention (
                   <strong>
                    true love
                   </strong>
                   )
                  </li>
                 </ul>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  The real signal? "They saw the price, understood the value, whipped out their credit card, AND stuck around."
                 </p>
                </div>
               </div>
              </td>
             </tr>
            </tbody>
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            <tbody>
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              <td class="hs_padded" style="font-family:Lato, Tahoma, sans-serif; font-size:15px; color:#23496d; word-break:break-word; padding:10px 20px">
               <div class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" data-hs-cos-general-type="widget" data-hs-cos-type="module" id="hs_cos_wrapper_module_17534542438671" style="color: inherit; font-size: inherit; line-height: inherit;">
                <div class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text" id="hs_cos_wrapper_module_17534542438671_" style="color: inherit; font-size: inherit; line-height: inherit;">
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  And as a matter of fact, speaking of retention data, our CEO, Luke, just dropped some tea from a recent board meeting that's got me geeking out.
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  <br/>
                  Picture this: They're reviewing a revenue retention chart (in Baremetrics, where else?), and there's this weird spike in one cohort that's just... sticking around. Hmmm.
                 </p>
                </div>
               </div>
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                <img align="middle" alt="Rentention Table [Board Meeting] - Product Hunt Story" src="https://inboxflows.com/_/image/https%253A%252F%252Fbaremetrics.com%252Fhs-fs%252Fhubfs%252FRentention%2520Table%2520%255BBoard%2520Meeting%255D%2520-%2520Product%2520Hunt%2520Story.jpeg%253Fwidth%253D1120%2526upscale%253Dtrue%2526name%253DRentention%2520Table%2520%255BBoard%2520Meeting%255D%2520-%2520Product%2520Hunt%2520Story.jpeg/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZiYXJlbWV0cmljcyIsInRpbWUiOjE3NTM5NjUzOTcuNjUxNjY0fQ:1uhSWT:pINtKy64k7dC9Az5tWzDad2V4Pw2B01KM54ApcSlSOM" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="560"/>
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               <div class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" data-hs-cos-general-type="widget" data-hs-cos-type="module" id="hs_cos_wrapper_module_17534550000192" style="color: inherit; font-size: inherit; line-height: inherit;">
                <div class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text" id="hs_cos_wrapper_module_17534550000192_" style="color: inherit; font-size: inherit; line-height: inherit;">
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  Turns out? Those sticky customers
                  <em>
                   all came from a single Product Hunt launch
                  </em>
                  . When they dug into the numbers, this cohort had insanely good retention compared to every other acquisition channel.
                  <br/>
                  <br/>
                  What looked like just another marketing experiment turned into their most valuable customer segment. And now? They're planning their next launch because the data told a story they never expected.
                  <br/>
                  <br/>
                  This is exactly why I'm obsessed with retention tables in Baremetrics—sometimes the most valuable insights are hiding in plain sight, waiting for you to connect the dots. Your pricing experiments might reveal similar surprises about which customers actually stick around. 👀
                 </p>
                </div>
               </div>
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               <div class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" data-hs-cos-general-type="widget" data-hs-cos-type="module" id="hs_cos_wrapper_module_17534555864774" style="color: inherit; font-size: inherit; line-height: inherit;">
                <table align="center" border="0" cellpadding="0" cellspacing="0" role="presentation" style="border-collapse:separate!important">
                 <tbody>
                  <tr>
                   <td align="center" bgcolor="#5484FC" style="font-family:Lato, Tahoma, sans-serif; font-size:15px; color:#23496d; word-break:break-word; border-radius:8px; cursor:auto; background-color:#5484FC; mso-padding-alt:12px 18px" valign="middle">
                    <a data-hs-link-id="0" data-hs-link-id-v2="AhAq87IZ" style="color:#00a4bd; font-size:16px; font-family:Lato,Tahoma,sans-serif; Margin:0; text-transform:none; text-decoration:none; padding:12px 18px; display:block" target="_blank">
                     <strong style="color:#ffffff;font-weight:normal;text-decoration:none;font-style:normal;">
                      Peek at your own retention tables in Baremetrics
                     </strong>
                    </a>
                   </td>
                  </tr>
                 </tbody>
                </table>
               </div>
              </td>
             </tr>
            </tbody>
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            <tbody>
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              <td class="hs_padded" style="font-family:Lato, Tahoma, sans-serif; font-size:15px; color:#23496d; word-break:break-word; padding:10px 20px">
               <div class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" data-hs-cos-general-type="widget" data-hs-cos-type="module" id="hs_cos_wrapper_module_17534181310939" style="color: inherit; font-size: inherit; line-height: inherit;">
                <div class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text" id="hs_cos_wrapper_module_17534181310939_" style="color: inherit; font-size: inherit; line-height: inherit;">
                 <h3 style="font-size:17px; margin:0; mso-line-height-rule:exactly; line-height:175%">
                  Step 3: Go Big or Go Home (Test Multiple Prices) 🧪
                 </h3>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  Why test one new price when you could test four? Full send. Oh, we're SO back.
                  <br/>
                  <br/>
                  The "Let's See What Happens" Framework:
                 </p>
                 <ul style="mso-line-height-rule:exactly; line-height:175%">
                  <li>
                   Variant A: 0.5x current price (yes, LOWER—trust the process)
                  </li>
                  <li>
                   Variant B: 1x current price (your control)
                  </li>
                  <li>
                   Variant C: 2x current price (getting spicy)
                  </li>
                  <li>
                   Variant D: 3x current price (full send)
                  </li>
                 </ul>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  You might be shocked at which price point actually performs best. Sometimes that 3x price converts nearly as well as your current pricing.
                 </p>
                </div>
               </div>
              </td>
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            </tbody>
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                <img align="middle" alt="math" src="https://inboxflows.com/_/image/https%253A%252F%252Fbaremetrics.com%252Fhs-fs%252Fhubfs%252Fmath.gif%253Fwidth%253D1008%2526upscale%253Dtrue%2526name%253Dmath.gif/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZiYXJlbWV0cmljcyIsInRpbWUiOjE3NTM5NjUzOTcuNjUxNzcwOH0:1uhSWT:kBl-poVGIpB-Xp5P0tC_uEa-pScNJNpeZdJMpxWmbrU" style="outline:none; text-decoration:none; max-width:100%; font-size:16px" width="504"/>
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            <tbody>
             <tr>
              <td class="hs_padded" style="font-family:Lato, Tahoma, sans-serif; font-size:15px; color:#23496d; word-break:break-word; padding:10px 20px">
               <div class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" data-hs-cos-general-type="widget" data-hs-cos-type="module" id="hs_cos_wrapper_module_175341886864011" style="color: inherit; font-size: inherit; line-height: inherit;">
                <div class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_rich_text" data-hs-cos-general-type="widget" data-hs-cos-type="rich_text" id="hs_cos_wrapper_module_175341886864011_" style="color: inherit; font-size: inherit; line-height: inherit;">
                 <h3 style="font-size:17px; margin:0; mso-line-height-rule:exactly; line-height:175%">
                  Step 4: Let's Talk About the C Word... Churn. 🫣
                 </h3>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  This is where founders get sweaty. Let me break it down with some napkin math:
                 </p>
                 <ul style="mso-line-height-rule:exactly; line-height:175%">
                  <li>
                   Double prices + lose 50% of customers = Same revenue
                  </li>
                  <li>
                   Double prices + lose 40% of customers = 20% revenue bump
                  </li>
                  <li>
                   Double prices + lose 30% of customers = 40% more moolah
                  </li>
                 </ul>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  By this point, you've already taken the time to validate the new pricing within certain cohorts. PLUS (and this is the kicker), every new customer comes in at the higher rate.
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  So even if it's feeling like you only go backwards à la Tame Impala, you'll still be making more money on each new customer that signs up at the new price point.
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  <span style="font-weight: bold;">
                   Hidden bonus
                  </span>
                  : Higher-paying customers often need less support and stick around longer. You might actually improve your life by losing price-sensitive customers. 🎉
                 </p>
                </div>
               </div>
              </td>
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              <td class="hs_padded" style="font-family:Lato, Tahoma, sans-serif; font-size:15px; color:#23496d; word-break:break-word; padding:10px 20px">
               <div class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" data-hs-cos-general-type="widget" data-hs-cos-type="module" id="hs_cos_wrapper_module_175341979631912" style="color: inherit; font-size: inherit; line-height: inherit;">
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                 <h3 style="font-size:17px; margin:0; mso-line-height-rule:exactly; line-height:175%">
                  Step 5: Patience, Young Grasshopper 🧘‍♀️
                 </h3>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  "We tested for two weeks and..." NOPE. Stop right there. Two weeks tells you exactly
                  <em>
                   nothing. Nada. Zilch!
                  </em>
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  Run the experiment until statistically significant, aka until you have enough data that represents your entire market, across seasonality and other variables.
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  You need enough data to account for:
                 </p>
                 <ul style="mso-line-height-rule:exactly; line-height:175%">
                  <li>
                   That weird dip in August when everyone's on vacation
                  </li>
                  <li>
                   End-of-quarter budget scrambles
                  </li>
                  <li>
                   Mercury being in retrograde (kidding... mostly)
                  </li>
                 </ul>
                </div>
               </div>
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                    </p>
                    <!--[if mso]>
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               <div class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" data-hs-cos-general-type="widget" data-hs-cos-type="module" id="hs_cos_wrapper_module_175342021609913" style="color: inherit; font-size: inherit; line-height: inherit;">
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                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  Testing pricing isn't about being greedy. It's about understanding what your product is actually worth to customers.
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  <br/>
                  If you can't explain why someone should pay more, then you're not ready.
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  But if you've been shipping improvements and customers are getting value? You're probably underpriced.
                 </p>
                </div>
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                    </p>
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               <div class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" data-hs-cos-general-type="widget" data-hs-cos-type="module" id="hs_cos_wrapper_module_17509840466121" style="color: inherit; font-size: inherit; line-height: inherit;">
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                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  <span style="font-weight: bold;">
                   Your homework
                  </span>
                  : Pick one small segment. Test one higher price. See what happens.
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  I'd love to hear how it goes! Hit reply and tell me what surprised you. I read every response. ✨
                 </p>
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                 <p style="mso-line-height-rule:exactly; line-height:175%">
                  Cheers,
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%">
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%; font-weight:bold">
                  Andrea
                 </p>
                 <p style="mso-line-height-rule:exactly; line-height:175%; font-weight:normal">
                  Content Marketer @ Baremetrics
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