Setting a price on a product
Discussion
A project that I started as a proof of concept application has suddenly turned into a real business opportunity.
It is a Sass platform.
I have spoken to a few people and no one seems to know what price we should be putting on the service. I would like to keep it a monthly subscription based model but not sure on the prices that I should be selling the services at.
I have 3 plans in mind. £39/69/99 per month.
Having looked at other Sass platforms, I see companies charging £300pm for a simple solution. whereas our solution offers massive opportunity (having spoken to early adopters.)
I was hoping some business experts could maybe share some of their experiences and thoughts on this.
It is a Sass platform.
I have spoken to a few people and no one seems to know what price we should be putting on the service. I would like to keep it a monthly subscription based model but not sure on the prices that I should be selling the services at.
I have 3 plans in mind. £39/69/99 per month.
Having looked at other Sass platforms, I see companies charging £300pm for a simple solution. whereas our solution offers massive opportunity (having spoken to early adopters.)
I was hoping some business experts could maybe share some of their experiences and thoughts on this.
Don't go too cheap. If more basic SaaS products are £300 then why sell for less? Sell for what its worth. If I was in the market I would not buy a product priced as cheaply as you suggest. Higher prices often give confidence.
I once saw a B2B software product sell for $10k when the original pricing had it at $1.5k. Our sales guy said that there's no way the client would have bought a product for such a small amount of money. By spending big it showed they'd bought a decent product and if it failed no-one could say 'Why did you buy such a cheap product?'
I once saw a B2B software product sell for $10k when the original pricing had it at $1.5k. Our sales guy said that there's no way the client would have bought a product for such a small amount of money. By spending big it showed they'd bought a decent product and if it failed no-one could say 'Why did you buy such a cheap product?'
Both of your replies are great.
There is no other company doing what we're doing on the market (I've done my research and I know) therefore it's hard to know what value it brings. But from what I show people(both companies and end users), it really is a breath of fresh air to all businesses with just a website.
Your posts gave me the confidence to increase prices.
There is no other company doing what we're doing on the market (I've done my research and I know) therefore it's hard to know what value it brings. But from what I show people(both companies and end users), it really is a breath of fresh air to all businesses with just a website.
Your posts gave me the confidence to increase prices.
My Pharmacy software is currently SASS, it allows for scaleability across multiple sites if required without increased costs.
Currently it’s £250/month, approx 50% cheaper than the next offering (which isn’t on a SASS platform and scale costs).
I agree with the consensus above-too cheap isn’t always a sign of “quality” and backup. Depends on the business turnover the platform supports.
Is it possible to offer teirs? Bronze £100, Silver £200, Gold £300.
Currently it’s £250/month, approx 50% cheaper than the next offering (which isn’t on a SASS platform and scale costs).
I agree with the consensus above-too cheap isn’t always a sign of “quality” and backup. Depends on the business turnover the platform supports.
Is it possible to offer teirs? Bronze £100, Silver £200, Gold £300.
Very few companies seem to offer single prices. There's the 'budget' option, which sets price expectations, the 'mainstream' option which most people pay and then there's the 'because I'm worth it' option which shows you're offering a premium service.
If you need to bring clients in (don't get bogged down with chasing individual sales), offer a free tier with either strict limits or a short enough license that they can get themselves excited but not move on to the next thing.
If you need to bring clients in (don't get bogged down with chasing individual sales), offer a free tier with either strict limits or a short enough license that they can get themselves excited but not move on to the next thing.
All very valid and good points.
yes instinctively I have put a 'free' package that is actually good but of course, has some key features missing and is capped.
With the new prices that I worked out, there are 4 tiers - 'free = £0pm', 'Basic plan = £289pm', 'advanced plan = £399pm', and 'Ultimate plan £479pm'
I think those are reasonable.
yes instinctively I have put a 'free' package that is actually good but of course, has some key features missing and is capped.
With the new prices that I worked out, there are 4 tiers - 'free = £0pm', 'Basic plan = £289pm', 'advanced plan = £399pm', and 'Ultimate plan £479pm'
I think those are reasonable.
pharmvrs said:
My Pharmacy software is currently SASS, it allows for scaleability across multiple sites if required without increased costs.
Currently it’s £250/month, approx 50% cheaper than the next offering (which isn’t on a SASS platform and scale costs).
I agree with the consensus above-too cheap isn’t always a sign of “quality” and backup. Depends on the business turnover the platform supports.
Is it possible to offer teirs? Bronze £100, Silver £200, Gold £300.
FYI this service that I am offering might actually be of interest to you. Currently it’s £250/month, approx 50% cheaper than the next offering (which isn’t on a SASS platform and scale costs).
I agree with the consensus above-too cheap isn’t always a sign of “quality” and backup. Depends on the business turnover the platform supports.
Is it possible to offer teirs? Bronze £100, Silver £200, Gold £300.
Let me know if you would like a demo
CasioPasio said:
therefore it's hard to know what value it brings.
You MUST work this out. When you are selling it you are going to need to tell people why they should buy it, i.e what value it brings to their company. It may be simplified administration, reduced staff time, improved efficiency, etc...Think about selling it to someone. Why would they buy it? What are they going to get?
OP
I’m in IT security and have been doing the tech sales side of both traditional product and SaaS platform based stuff for 10+ years. If you don’t want to talk public about it then drop me a PM about what it does.
If I think it’s in any way relevant to my knowledge I’ll happily tell you what I think of your tiers.
I’m in IT security and have been doing the tech sales side of both traditional product and SaaS platform based stuff for 10+ years. If you don’t want to talk public about it then drop me a PM about what it does.
If I think it’s in any way relevant to my knowledge I’ll happily tell you what I think of your tiers.
CasioPasio said:
yes instinctively I have put a 'free' package that is actually good but of course, has some key features missing and is capped.
Don't do this. Make the free version fully functional. You want potential customers to get to know all of the features and benefits and invest themselves in using everything, to the point where - when the free period expires - it's a "no brainer" for them to pay to continue using it. You are also then more likely to get people paying for the top level package because they will be familiar with it already and have had their data set up in it etc. so they are more "sticky" and it's harder/more hassle for them to stop and switch away to a competitors product.Frimley111R said:
You MUST work this out. When you are selling it you are going to need to tell people why they should buy it, i.e what value it brings to their company. It may be simplified administration, reduced staff time, improved efficiency, etc...
Think about selling it to someone. Why would they buy it? What are they going to get?
I spoke to someone today and they said to get a big sales list before you actually build any further. Think about selling it to someone. Why would they buy it? What are they going to get?
I know I can sell it because I understand the problems users face (Phd research readings) when they visit certain websites and I can provide the solution.
Tested it on consumers & spoke to businesses and I got positive feedback from both sides.
Consumers love it because of its characteristics.
Businesses love it because of the value it provides to consumers.
ReverendCounter said:
I'd be interested in finding out more, once you make the product/service public.
I would be more than happy to show it. we should be finalising everything in the upcoming weeks. I'll PM you if you wish to see a demo.
If your business/company has a website, it's likely it could be useful to you
48k said:
Don't do this. Make the free version fully functional. You want potential customers to get to know all of the features and benefits and invest themselves in using everything, to the point where - when the free period expires - it's a "no brainer" for them to pay to continue using it. You are also then more likely to get people paying for the top level package because they will be familiar with it already and have had their data set up in it etc. so they are more "sticky" and it's harder/more hassle for them to stop and switch away to a competitors product.
Good points. The free version does not have an expiration time. And it is functional, it's just the database for the system that is limited. The cap is also more than enough to bring value to the consumer.
CasioPasio said:
48k said:
Don't do this. Make the free version fully functional. You want potential customers to get to know all of the features and benefits and invest themselves in using everything, to the point where - when the free period expires - it's a "no brainer" for them to pay to continue using it. You are also then more likely to get people paying for the top level package because they will be familiar with it already and have had their data set up in it etc. so they are more "sticky" and it's harder/more hassle for them to stop and switch away to a competitors product.
Good points. The free version does not have an expiration time. And it is functional, it's just the database for the system that is limited. The cap is also more than enough to bring value to the consumer.
48k said:
CasioPasio said:
48k said:
Don't do this. Make the free version fully functional. You want potential customers to get to know all of the features and benefits and invest themselves in using everything, to the point where - when the free period expires - it's a "no brainer" for them to pay to continue using it. You are also then more likely to get people paying for the top level package because they will be familiar with it already and have had their data set up in it etc. so they are more "sticky" and it's harder/more hassle for them to stop and switch away to a competitors product.
Good points. The free version does not have an expiration time. And it is functional, it's just the database for the system that is limited. The cap is also more than enough to bring value to the consumer.
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