4 ms·
Do you have a market strategy otherwise? What is your customer base and target market? Both pricing models and numbers will come out very differently for the s
by 3np 4y ago
Do you have a market strategy otherwise?
What is your customer base and target market? Both pricing models and numbers will come out very differently for the same underlying technical work depending on if you're aiming for fewer how-much-could-a-banana-cost-biggies (these need service agreements and someone who they can talk to on a first-name basis) or a turnkey system for every startup and corporate using Cypress out there (they just register a credit card and e-mail and start integrating).
While you are considering your margins, you're going by value-based pricing here - you focus less on how much it costs you to build and run and your bottom line and more on how valuable it is to the potential customer. Some told you hundreds of hours were saved.
It sounds like you have the pricing model for a mass-market SaaS with the pricing for the high-end.
One risk with such high value-based pricing is that assuming initial success, some happy customers might get restless after a few weeks/months/years and realize that for the price they're paying you they could actually save money by building and rolling something similar in-house. The customers who are ready to pay those prices are precisely the ones likely to do it, I think. In any case, unless your market is super niche or you have some crazy edge, you will get competitors if you're successful enough. Maybe even straight-up copycats. This is nothing bad at all but it can be good to keep in mind that you may lose customers if they're able to slaughter you on cost-performance.
Also consider that these higher-end clients likely care a lot about availability and stability. If you don't have brand-recognition or a personal reference, it can be hard to convince them to take a shot. Free trials will never be enough for them to be confident either. Initial underpricing (not too much obv) is a way to compensate for that initially.
But again, I think we need more context before we can make a fair assessment of if the price is reasonable or not.