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How do you decide on your pricing model compared to competitors, any advice?

Bjarn Bronsveld
2 replies
Pricing is hard. I've been working on my pricing model for a while now, thinking about it at random times when I feel like it. However, there's one problem: how to be competitive. In my scenario, I have a more complete feature set than most competitors but I will and am being compared to the competition by the "core" feature that they all offer. Because of that, they are mostly cheaper. I also do not want to make my pricing model too hard to understand, so no feature locks, just usage-based. I am wondering what your advice to me and other founders would be on this subject. Should I go for the more "premium" pricing or go lower/on-par with the competition and see what happens in the later stages of growth?

Replies

Amechi Egbe
Hey Bjarn! Agreed! Pricing is tough! Moreover, if you have a more complete feature set then see if you can interweave some of those premium features into the "core" feature set. Then sell your users on that point and go for the premium pricing point. Better to differentiate early on than join the herd in the race to the bottom of the pricing totem pole.
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