Pricing questions are about the strategies, tactics, processes and decisions for directly monetizing products and services.
14
votes
7answers
996 views
How can I determine a good rate for freelancing?
I've currently got a startup and a full-time job. I'm looking to transition to part-time freelancing so I can focus more on my startup. However, I'm walking into this completely blind, and I need ...
14
votes
1answer
945 views
How much should we charge for an IT job?
The scenario
We just got our very first medium/large size client.
They are opening a new company which operates around a web application that will be entirely developed and maintained by us.
We ...
13
votes
9answers
1k views
Should SAAS have tiered pricing for different countries?
For a start-up providing a web-app to customers on a subscription basis, do you think that the benefits of different geographic pricing outweigh the downside?
My rationale is that while North America ...
12
votes
8answers
1k views
Pricing Theory - What works, what doesn't, and how to get the most profit?
Many of you have priced several different types of products from digital to the physical. So keeping it internet centeric what pricing research do you do before going with an amount? And once you're ...
12
votes
9answers
1k views
Subscription revenue: $40 a year or $3-5 a month?
Hey there, I'm the founder of a site that helps families keep in touch. We're going to be buying our cash register soon, so we're figuring out our revenue model.
We're deciding between two types of ...
11
votes
14answers
2k views
subscription based models, how to determine pricing?
I am nearly ready to launch, however I need to determine a pricing for monthly payments by the clients.
How do you price it? Each time a user uses the product it costs us money through hardware ...
11
votes
7answers
529 views
How do you raise price?
This is follow-up to my previous question. Inspired by the answers, we did a quick customer survey. We asked the standard question "would you recommend our service to a friend?" and "what is the main ...
10
votes
6answers
1k views
Does charging less than your competitor make your product look inferior?
Our monthly subscription is 30% less than our competitors. We also do not charge a set up fee, whereas, most of our competitors charge $400-600. I think our product is "as good" or better than any ...
10
votes
7answers
541 views
Agile With Fixed Pricing?
I am starting a company and am considering agile development, but I don't understand how a Fixed Price contract (the type I would like to use), could work. It seems like the point of Agile is to keep ...
9
votes
11answers
1k views
Anyone experimented with $49.95 vs. $50 Pricing for subscription software?
I've read a bunch of times in the retail world where the $49.95 (or $49.99) style pricing actually increases sales vs. just making it a round number like $50.
Has anyone tried this for a subscription ...
9
votes
3answers
1k views
Got an offer to white label one of my products. What do I do?
I got an offer to white label one of my products.
They want to determine pricing/conditions, etc.
I would appreciate any advice/references on how to best deal with this situation.
Thanks in advance.
...
9
votes
10answers
1k views
To Freemium or not to Freemium?
There are numerous examples of SaaS products stuck with lots of users and few paying customers. The common advice is not to give away too much in the free plan and always be upselling. The best ...
9
votes
6answers
900 views
Communicating a Rate Increase to my Clients
I currently run a two person web development team. My partner and I offer Ruby on Rails programming for our clients (small companies). We typically charge $75/hr for most of our clients but we have ...
9
votes
5answers
424 views
Giving away a software program for free: competitors' responses?
I have a small startup that developed a software program. I've copyrighted the software and am working on patent protection, and I've started some marketing. It has been a very low-cost effort so ...
9
votes
7answers
341 views
The ramifications of testing prices
I would like to test prices for a SAAS (software as a service) product. I know how to do A/B testing. My question has to do with the ramifications of such testing. If we sell to Customer A for $99 and ...
9
votes
3answers
295 views
What is the best way to test whether people would pay for a web application?
I am currently implementing a relatively simple web application, as I'm trying to dive into Ruby on Rails. It turns out be going quite well and, in my opinion, it will appeal to a lot of users. But ...
9
votes
5answers
405 views
A/B testing a price point
Is it legally/ethically bad to run a split test on the price point of your product?
Temporary coupons don't test the right things and introduce other variables into the experiment, and changing the ...
8
votes
16answers
770 views
Know any large/public software companies that are using freemium?
I'm trying to find examples of large software companies that have used freemium (whereby there is a free product with a paid upgrade to a premium product).
Anyone know of any companies that either ...
8
votes
5answers
223 views
How best to deal with a rising Canadian dollar value for a software company?
My software company is in Canada. We sell our software for download from our web-site. Most of our sales are made in the US, though we do about %25 of our business in Canada and Europe. We sell our ...
8
votes
4answers
991 views
How to inform client of rate increase?
It's been 3+ years of service. No problems, great relationship. However, I need to increase the rate at which I bill as well as to tell them that I am no longer going to provide service for specific ...
8
votes
2answers
448 views
Offering bulk discounts on SaaS user subscription fees
Please note that I am specifically referring to SaaS providers that have adopted the traditional pricing model of charging per user per month, and have at some point considered offering pricing tiers ...
7
votes
5answers
2k views
What is the secret of Dropbox's success?
Why is Dropbox so much more successful than many other sites that offer/offered essentially the same service?
7
votes
5answers
2k views
How do I price my expensive software and charge $100,000 in a presentable way?
We have a software product that increases productivity of engineers and allows them to build/prototype new products. It costs $25,000 to use it for 3 months. A big name company is interested. How do I ...
7
votes
4answers
786 views
Subscription Pricing Starting Strategy: start high and lower, or start low and raise?
With a subscription based web application aimed at businesses: Is it better to set the initial price at the high end of what you expect people would pay and lower it if it becomes necessary, or should ...
7
votes
5answers
2k views
What advantages does price discrimination have over the using the same price for everyone?
I'm trying to decide whether to change my pricing scheme from 'the same price for everyone' to 'a different price depending on which customer you are' (price discrimination / price differentiation). ...
7
votes
1answer
324 views
What to consider when licensing source code
Component vendors like Syncfusion and Infragistics often make source code available to their customers (at an additional fee). Some benefits of this would appear to be:
Enable customers to make ...
7
votes
4answers
165 views
Can anyone share experiences in licensing content?
I have two companies that have interest in licensing my business's content (training materials). I want to offer exclusive and non-exclusive pricing options, maintenance fees (for annual updates), ...
6
votes
6answers
608 views
Am I ruining the industry?
I'm currently building/running a 'digital marketing agency' from home with my partner. We provide websites (business card sites, CMS-driven sites, e-commerce etc), hosting, email services right ...
6
votes
5answers
342 views
Can being too transparent about pricing, too early, actually hurt me?
I am creating a very high end B2B SaaS, subscription based, online product. The person doing my information architecture and I have very differing views on the subject of when pricing tiers should be ...
6
votes
11answers
830 views
Should product/service prices be listed on your website?
In Camels and Rubber Duckies, Joel Spolsky discusses what he believes to be a poor pricing decision:
Bad Idea #2: How Much Money Do You Have? Pricing.
This is the kind used by software
...
6
votes
7answers
4k views
Why do big companies need so much of advertising/sponsorship of events
Coca cola, pepsi, lays etc why do companies need so much of advertising all over TV's, internet, sports events...even after becoming a household brand.
how much percentage of their profit usually ...
6
votes
4answers
222 views
How to deal with users expecting a free edition of a software product (when not available)?
I'm working to launch my product in the near future and some guys are asking if there will be a "free" version.
I've read some opinions that discourage the freemium model because canibalizes sales ...
6
votes
5answers
343 views
How do I “make up” rates?
How do I figure out what to charge for freelance technology-related work? Every time I've asked online, I've been told not to ask.
6
votes
5answers
242 views
Enterprise Software: List prices?
Do you enterprise software people list your prices on your website? Most enterprise software seems to require the customer get in touch for a quote. What are you thoughts on this?
5
votes
7answers
669 views
Price quote for enterprise customer
We got a quote request from a reseller for one of their customers for about a 100 licenses of our software with 4 years of support.
What is the a good way of structuring this quote without showing ...
5
votes
11answers
482 views
How totally insane would it be for your price to be “whatever you think it's worth”
This is a hosted (zero-install) web application. You create and account and stuff happens. The unattended costs (ignoring tech support, ads, etc) are easy to compute per customer.
Here's the idea: ...
5
votes
6answers
363 views
Good questions to ask when approached for a freelance web-development gig?
If someone approaches you expressing interest in having you perform web-development work, what questions should be asked?
Assume you know only the bare-minimum: he/she wants you to develop a website.
...
5
votes
4answers
338 views
Pricing according to the competitors
I am currently developing a software and planning to sell it as a downloadable product. There are already competitors on the market out there and their pricing is too low. What I think is that the ...
5
votes
7answers
1k views
Which pricing model to use for a product that requires a lot of support?
I am developing a product that potentially requires a lot of support. I am developing documentation and tutorials to remove the need for support as much as possible, but I can still see the need for a ...
5
votes
4answers
327 views
Pricing for iphone app?
We are developing an iphone app for business but we are finding it very hard to put a price to the app? Does anyone know a rule of thumb, have examples or have any tips on what we could charge. I know ...
5
votes
6answers
2k views
How do I price website advertisements?
We want to start selling ad space on our niche website, however are unsure at what factors make up the ad price.
We will start offering ad space once we are getting 3k-5k visitors per month. Based on ...
5
votes
3answers
170 views
Pricing Psychology
I am looking for a reference on this topic. Every knows that the difference in cost between $100 and $99 is more than $1 in the minds of consumers. Thus prices ending in $99 are commonplace but ...
5
votes
6answers
5k views
How to calculate the price to quote for a service?
Is there a logical way to come up with pricing for a service such as below that my friend came up with. Are these valid ?
Split down the service into as many
small steps as possible. Make sure
to ...
5
votes
1answer
2k views
What should a small company charge for development of a mobile (Android) app?
The context of this question is a small web design company that wants to branch out to do mobile application development. I am wondering two things:
What average hourly fee do you charge a client as ...
5
votes
3answers
156 views
Free trials and future pricing for early adopters
Ive been thinking about how to deal with early adopters of a SaaS web application in terms of ramping them up from free trial early access users to fully paying customers. Im wondering if there might ...
5
votes
4answers
1k views
What enterprise software pricing models exist?
Just looking for some examples on what other people use as a pricing model for their enterprise software.
Does anyone charge based on # of employees (not # of actual users)? We figure the # of ...
5
votes
2answers
320 views
Alternatives to hourly rates for web design?
I've made this clear in some of my other questions, but for the sake of getting a more diverse viewpoint I'm asking a separate question.
I'm 14 years old, but really passionate about web design. I ...
5
votes
4answers
139 views
Charging annually based on number of users. How to grant flexibility on the number of users?
We have a product that the customer pays based on the number of users. Suppose it costs 10$/mo/user and that the client has 10 users. That is, he pays 100$ per month for his 10 users. We want to offer ...
5
votes
2answers
200 views
How to set your price in USD and EUR?
Many US-based companies charge the same amount in the US as in Europe: a certain item will cost 100 USD when bought in the US, and 100 EUR when bought in Europe. This really means that the European ...
5
votes
1answer
972 views
How to price a White Labeled or CoBranded Web App?
I run a startup web app that is an informational resource as well as marketplace. The marketplace side has been slow to ramp up, so revenue is minimal.
Recently, I've been contacted by several ...
