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The one thing I've learned from our pricing inquiries over the last year, is that customers will often pay far more than you suspect, provided the product is pa
by pedalpete 9y ago
The one thing I've learned from our pricing inquiries over the last year, is that customers will often pay far more than you suspect, provided the product is packaged correctly.
I'll do a write-up once we are more settled in our pricing about our pricing journey, but in a nutshell.
1) early 'customers' said they wouldn't pay anything, or maybe $50/year - we have no business
2) giving them pricing < $100/year for x number users where they would likely spend $200 / year was a no go.
3) giving them pricing of $800/year with more users than they would likely ever have was interesting to them
4) telling them it was $800/year without limitations on the number of users, and they think it's too cheap.
5) tell them that it's $800 per x number of users so they would need to spend $5000 per year where they are currently spending $3000 on their alternative, and they are still interested.
This is one of our customer segments, the thing is, many of these customers would likely only have paid $150 on a per-use plan. But they want to pay more, and not have to think about per use.
The challenge for us, is our cost for each of their users is high, and as this is a new market, it is very difficult for any of us to forecast usage. We're learning.
Don't undersell yourself, and I've learned that focusing on the packaging is as important as the actual $$.
Also, how many people are charging the same amount in $ and €? We give the same dollar amount to both groups, don't undersell on exchange rate either (I don't think).
- sbinthree 9y agoPeople were more excited to pay $500/month when we through in a "white-label PDF quick start guide" than $300/month. Only after being beaten over the head with that request on calls did we change things, now they love it.
- pbourke 9y agoCould you clarify what you mean by “white label,” here? Your customers were going to sell the service to their customers?
- cpncrunch 9y ago> with more users than they would likely ever have was interesting to them I've found that customers are over-optimistic about their own businesses and are happy to pay for higher user limits that they never use. You just need to give them the option. >how many people are charging the same amount in $ and €? I keep it simple and charge in US$, even though many of my customers are in the UK. US$ is the "global" currency, and everyone understands it.