Pricing Is an Illusion: How I Made More Money by Charging Less

Machine learning • No Code • SaaS Development
By rupam_vohra
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A few years ago, I believed that pricing should reflect the value of a product. Sounds logical, right? Charge more if your product saves time, makes money, or solves a big problem.

But here’s what I learned the hard way: Pricing isn’t just about value—it’s about perception. The way customers feelabout your price matters as much as the price itself.

And sometimes, charging less can actually make you more money.

Let me explain.

When Higher Prices Backfire

When I first launched a SaaS product, I took the "premium pricing" approach. My logic was simple:

✅ High price = High perceived value
✅ Fewer customers = Less support burden
✅ More revenue per user = Faster profitability

It all made sense… on paper.

But reality hit me hard.

❌ Low conversion rates. People were interested but hesitated to pay. I assumed my marketing was weak, but price was the real issue.

❌ Longer sales cycles. Prospects needed convincing. They asked more questions, wanted demos, and took forever to decide.

❌ Higher churn. Those who signed up expected magic because of the high price. If the product didn’t deliver instant results, they left.

I was running uphill.

Then, I made a counterintuitive move.

Slashing Prices by 60%—And Making More Money

Instead of increasing my price (as many SaaS founders suggest), I cut it by 60%.

Here’s what happened next:

🚀 Conversions shot up – More people were willing to take a chance. Instead of thinking, Is this worth it?, they thought, Why not?

🗣️ Word-of-mouth increased – A lower price made it easier for customers to recommend it to friends.

🔄 Churn dropped – Customers weren’t expecting a miracle—just a tool that worked.

📈 Revenue actually grew – More signups meant more total revenue, even with the lower price.

I realized that pricing isn’t about what a product is worth—it’s about what customers feel it’s worth.

Psychology of Pricing: Why Lower Prices Work

Here’s why reducing prices can sometimes increase revenue:

1. Price Anchoring

If people are used to paying $50/month for a tool, a $20/month option feels like a steal—even if $20 is still profitable for you.

2. Less Decision Fatigue

High prices force customers to think. Lower prices allow impulse buys. If your price is low enough to fall under a customer’s mental spending threshold, they won’t hesitate.

👉 A study by Carnegie Mellon University found that reducing the “pain of paying” increases conversions by up to 28%.

3. The "Cost of Doing Nothing"

When your price is too high, customers compare your product to doing nothing. Lowering the price shifts the equation—it now costs more to ignore the problem than to solve it.

When Charging Less Makes Sense (And When It Doesn’t)

✅ It works when:

  • You’re in a competitive space and need a foot in the door.
  • Your product grows through word-of-mouth.
  • You have a high Lifetime Value (LTV) and can afford lower initial revenue.

❌ It doesn’t work when:

  • Your product requires a lot of customer support (cheap users can be needy).
  • You have a niche, high-end product serving big businesses.
  • Your margins are too low to sustain lower pricing.

Finding the Sweet Spot: A Pricing Experiment

If you’re struggling with pricing, test this:

1️⃣ Lower your price by 30-50% for a month.
2️⃣ Track conversion rates, churn, and total revenue.
3️⃣ Compare results. If revenue goes up, you’ve found a better price point. If it drops, you can always go back.

Pricing isn’t a one-time decision—it’s an ongoing experiment.

What This Means for No-Code Platforms Like Fuzen

Platforms like Fuzen prove that pricing can be flexible without sacrificing quality. Fuzen offers no-code CRM templates, allowing businesses to customize their tools without expensive, long-term contracts.

Unlike traditional CRM giants that lock you in with high fees and unnecessary add-ons, Fuzen lets you:

✅ Pay once instead of monthly fees.
✅ Customize only the features you need—no forced bundles.
✅ Avoid hidden costs—full transparency in pricing.

In short, Fuzen gives businesses pricing flexibility—without compromise.

The Takeaway: Perception > Reality

Pricing isn’t just about numbers—it’s about how customers feel about the value.

For me, lowering my price made my SaaS easier to sell, faster to grow, and more profitable in the long run.

If you’re struggling with conversions, maybe the problem isn’t your marketing. Maybe it’s your price.

Try it. You might make more money by charging less.

What’s your experience with pricing? Have you tried lowering (or raising) prices? Let’s discuss! 👇