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1. What to charge for? Bandwidth? Storage? Other considerations? Unless your service is predominantly driven by storage/bandwidth usage (eg: video), it makes s
by vivegi 5y ago
1. What to charge for? Bandwidth? Storage? Other considerations?
Unless your service is predominantly driven by storage/bandwidth usage (eg: video), it makes sense to bundle these costs into the customer price.
2. How to collect payment? Is Stripe a good option? What else do I need on the backend?
(Assuming this is the US) You can go for Stripe or any other payment provider that gives you a good API for integrating with your programming language. This option eliminates the need for storing credit cards/account information securely (the payment provider is responsible for that and must be PCI DSS compliant).
3. How much to charge? Expenses + desired profit? Research competition.
Price discovery is a combination of art and science. Yes, you should price it to cover your costs + expectation of profit. When researching competition, look for feature set comparison and poll the target audience on which features they value the most (and which ones they wish were available i.e., unmet needs). If you are meeting some of those unmet needs, you should play around with price points to determine the perceived value of those features.
4. How to charge? Establishing tiers seems to be a common practice. Free, Personal, Business, Big, Gigantic. Does this simplify billing? Or is it more of a promotional thing, and establishing a single charge rate is simpler?
IMO, this helps with customer segmenting and price discovery.
5. What other questions am I not asking?
You may want to check out this resource: https://www.nickkolenda.com/psychological-pricing-strategies/ https://www.nickkolenda.com/psychological-pricing-strategies...
It has a whole list of pricing tactics that may help you and address some of your questions above.
- krcourville 5y agoGreat info here. Thank you!