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Paying by the month gives you extreme flexibility. You can always lower the price in the future, although raising it is a bit harder. One thing to do would be
by tstegart 18y ago
Paying by the month gives you extreme flexibility. You can always lower the price in the future, although raising it is a bit harder.
One thing to do would be to compare what your app does with the one that costs 300/month, and what yours does compared to the one that costs 14/month. Where does your app fit in?
How much are you looking to make? How much are your costs per customer and costs per month? The basic way to price is to add up your fixed costs (rent, hosting, marketing, etc) and the cost per month for providing the software, and then add in a healthy profit margin. That's how much you should charge.
There are a lot of other pricing mechanisms, including how much money your software will save the customer, how much value they perceive it to have, etc. You could always start high and just keep lowering the price until you reach the ratio of customers to price that you want.
- mattculbreth 18y agoGood thought process here, thanks. I do think the central question will be how much value my app is providing vs. what the main app is doing. The main app could also start duplicating what I'm doing (and I expect that) so I have to continue adding new things they don't do.