Founder Playbook

Pricing
We tested it at 30 bucks a year and we tested at 15 bucks a year too... they were about a wash which is really interesting from a net revenue perspective 15 bucks a year versus 30 bucks year was was basically flat but we went with 30 because it gave us more maneuverability.

Price Elasticity Can Be Flat Across A 2X Range — Choose The Price That Gives You Optionality

AllTrails cut price from $50 to test $30 and $15 — net revenue was flat between them, meaning conversion volume offset the per-unit difference. Ron picked $30 not for revenue maximization but for optionality: room to discount, offer introductory pricing, and run promo campaigns. At $15 there was nowhere to go. If your test shows flat revenue across two prices, always take the higher one for tactical flexibility.


R
Ron Schneidermann
AllTrails1M+ paid subscribers · 25M+ registered users · essentially bootstrapped to profitability
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Growing Your App to 1M Paid Subscribers — Ron Schneidermann, AllTrails· 25:25
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