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Charge by the ability to pay, based on your value proposition. For example, if your service or product can help the customer save $10k/month for the next three
by tallgiraffe 6y ago
Charge by the ability to pay, based on your value proposition.
For example, if your service or product can help the customer save $10k/month for the next three years, that's 360k that you will be saving them. It doesn't make sense to charge them $200 for it, but maybe 30% of the net savings can do it, so $100k!
On the other hand, if for 100k they can hire a FT developer to do what you do, plus 10 other features, then charge less so they pick you over the other option.
From the personal experience, I would say avoid building products where you sell something for very little, unless you can get lock-in and your customer's lifetime value is pretty large. So if you offer a $10/m service, and your customer leaves in 3 months, that's a lot of work. But, if they stay for next 10 years, and you can find 10 million customers like them, then it's worth it (hey Dropbox!).