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  2. How you decide on pricing models?

How you decide on pricing models?

Vladimir Nikolic
3 replies
We have built a fantastic product. The goal was to make something beautiful, free forever for personal use, and with no learning curve at all. Create account and start creating tasks. Our clients are teachers, parents, developers, medical doctors.. However, we would love to come up with some payment plans. This kind of SaaS usually charge per seat. And then price goes thru the roof. I am trying to figure out what would be the best pricing plans for our app. I want to make it affordable, yet, i need to cover my personal expenses like hosting, email sending, file hosting etc.. Trying to charge ONLY things that i am paying for. So, for personal use, this is not a big deal, so i can cover it :) But if some company using it, i think would be nice to cover expenses and maybe earn some moneys on top. We have lunched a bunch of features, like time tracking task, history of activities, filtering by priorities, tags, users, there is really a lot. We are small startup, financed from me. How do you decide on pricing models? How to decide who, what and how much to charge?

Replies

Murali Gottumukkala
aasaan
There was a lot of pricing comparision with products outthere and also a building meter on the unit cost built on features and also the profitability factor to it
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Krishna Kumar
From the way you set out the issue, looks like you are looking for a cost plus model. Figure out your costs, add a decent margin, figure out breakeven number of paying customer. and you have a pricing. But there are other issues to consider There will be costs that you currently do not have - for example support and extended support hours, legal and compliance costs and so on. One key factor to consider is that your pricing need not be written in stone. You can start with a price point and then increase or decrease it. If you are not sure, you could offer an introductory pricing and later change it when you have more data. Like @carmela_padasas rightly said, what are your competitors charging? Are you offering enough to be able to charge equal to or more than them? Can you afford, cost of operations wise to charge less than the competition? You cannot charge too low as the subscription management platforms usually charge a fixed price plus. (The lowest I have seen is 8 USD)
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Carmela Padasas
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Linkify
Since I'm always here on product hunt, FB groups, and Twitter, I saw these questions: Pricing Strategy. Consider these questions: 1. Do you want a margin in case your cost goes high? 2. Your ICP (should they want it an LTD, their behavior and reasoning) 3. Do you want to consider your intangible assets (time and skills) 4. Are you thinking of additional features in the next 2-5 years? How much is it? 5. Pricing Tier Strategy 6. Competitor's pricing
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