Pricing questions are about the strategies, tactics, processes and decisions for directly monetizing products and services.

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2
votes
1answer
120 views

SaaS limitations for high-volume but low-profit organisations?

We are providing a SaaS Service (currently in open beta) and thinking about our pricing tiers. We want to offer plans that grow at the same pace that our customers businesses grow. We are thus ...
1
vote
2answers
188 views

How do you bill for customisations in your SaaS offering?

We provide a customisable SaaS solution, and have adopted the classic billing model of a monthly user subscription fee. However some of our clients also require us to make customisations to their ...
2
votes
1answer
263 views

Higher pricing for Apple in-app purchases

I'm contemplating pricing for my product. It is an internet based game that is sold via subscription. I planned on a price point of $1/month. I can process a credit card subscription for about 3% ...
0
votes
5answers
135 views

As a Service Provider, Answering Up Front Demand for Rate?

I am a solo professional (hence my title on this board.) I don't have a product nor do I have a team. (I am just setting the context for this question.) I am in contact with other copywriters and I ...
3
votes
6answers
1k views

Hiring a freelancer to build an app

I'm deciding to hire a freelancer to build an app from one of the following websites: GoFreelance, ODesk, Rent-a-coder, eLance. The thing is that I don't know how much my app will cost me. I have ...
5
votes
3answers
171 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 ...
4
votes
6answers
368 views

Create identical product and sell for half price?

I would like to compete in the software market and I thought that if I just present a product that provides the same functionality and is as good as its competitors and sell if for half the price then ...
1
vote
2answers
283 views

A startup should be commited with support 24/7? How much to charge?

At our startup we have a software on premise business. We offer a system, for about 20k. The client needs support for the system for 3 years, that includes to fix it if it fails no matter how many ...
1
vote
2answers
186 views

What are the various IT consulting models and the benefits and drawbacks of each?

I am pursuing an opportunity as an outside consultant to an established company, but don't really know how to package my services. Here are a couple of models I have come across: Charge a retainer ...
6
votes
4answers
224 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 ...
4
votes
8answers
793 views

Why is customized software so expensive?

Actually, I know the answer but I don't know how to market my answer. Quick background We're an independent team of 3 developers who write software for a company with 2B in revenue. We've been ...
0
votes
1answer
106 views

Sensible pricing options for a tiered translation service on retainer? Or - how do I add value more without exhausting myself? [closed]

I’m an English man living in Germany. As a side line, I offer German to English translation, interpreting and language lessons. These do not provide a steady income, so I’d like to offer a service ...
0
votes
2answers
99 views

When a client chooses a lesser subscription in a web app

What happens when a user had a greater subscription plan but chooses to convert to a lesser one? Of course, the features should be locked/limited, but what happens for example in this case: ...
3
votes
2answers
122 views

Determining Price for Data

I have some data that I think is valuable. I have looked at my potential market and I believe there are three potential buyers. While this data is valuable, I believe the market is small. I feel I ...
4
votes
1answer
216 views

Pricing my web application - validity of a demand curve?

I'm in the phase of designing the price structure of my web application, and I'm trying to use a demand curve as a tool to find the "best" price. A few questions pops up in my head: How can this be ...
1
vote
3answers
130 views

Pros and Cons of “Act Now” offers

Do any of you have experience with what I like to call "Act Now" pricing, or pricing which implies that the current price is a discount from the "real" price? I'm releasing a SaaS tool that has a ...
3
votes
4answers
286 views

What's the thinking behind why so many pricing pages having 3 options?

I'm pricing my SaaS version 2.0 software in preparation for launch in Q1 and I'm wondering why so many pricing pages have 3 options. For v1 we just had 1 pricing plan and we definitely left money ...
4
votes
2answers
166 views

Desktop Software Startup: How to go about pricing Pay Per Feature

So I found lot of articles and questions on pricing software in separate market segments but for my current desktop software here's my model. I offer a free version with lot of disabled features. The ...
2
votes
2answers
76 views

How to set the price to optimize equipment utilization?

I'm in a technical position, soon to be launching a service company that receives orders from electronic component manufacturers to perform laboratory measurements on their products, charging them for ...
3
votes
4answers
336 views

What is the best way to price my service?

Please help me decide and refine the pricing for my new SAAS application. I already have an installable application and about launch a service on the cloud with monthly subscriptions. I have put ...
1
vote
2answers
106 views

How much money can I expect to get from corporate sponsorships on iPad applications?

I am a developer of an iPad application that can be used to expedite the transfer of information from patients to physicians. We are marketing to a wide variety of multispecialty adolescent clinics, ...
-1
votes
1answer
134 views

How to price this software

We are building software for a medium-sized company 'X'. Software is unique but strongly depends on data which the company 'X' can gather and plug into the software. We develop that exclusively for ...
1
vote
1answer
35 views

What is the correct charge for a single buyer?

We have a somewhat specific app/module that is requested by an enterprise so we don't know how much to charge, we are able to calculate the stimate of resources & time used, but being developers ...
0
votes
4answers
132 views

does ideas have a price?

I'm a software developer and some time ago, I've shared an idea to a friend. I've said, look, I think that this app will boost your services and someday I'll do it for you. That friend was very ...
0
votes
2answers
249 views

How to price license fee for per-seat usage of Java desktop application?

Here's the model I am thinking of right now: Total cost to buyer = (number of seats) X (partial 3rd party license cost + app development cost + 1 year support & updates). Number of Seats ...
1
vote
2answers
625 views

high margin vs low margin

What are some key factors for a startup to consider when determining to build a low margin/high volume business or a high margin/low volume business? The only factor I can think of is the sales ...
3
votes
4answers
322 views

Idea: Go free first, then start charging customers

My primary aim is to get as much publicity as I can get. Would it be a good strategy to go all free when you first launch your product and then turn it into a paid service couple of months later? ...
2
votes
3answers
225 views

How to determine competitor's pricing model when impersonating a customer is challenging

This question accompanies my recent previous question, Are there any methods you can think of to determine a comptetitors pricing model under these stipulations: The pricing sheet is not publicly ...
3
votes
4answers
136 views

Should I show pricing on a test landing page?

I put up a test landing page for a SAAS product/service that I think has potential. My goal is to test the market to see if there is enough interest to justify building out the product/service. The ...
1
vote
1answer
183 views

Advice on Webdesign Business - Pricing breakdown

i'm doing freelance PHP programming and SEO Consulting for a couple of years now. I'm at a point where i am approached by a large company (doing business in the single millions). They want a re-design ...
4
votes
2answers
343 views

Is freemium still working?

We've heard from several formerly wildly successful software/webapp companies using the freemium business model that it is no longer working well. Does anyone have any validation to this? And if ...
2
votes
1answer
105 views

Freemium business model in beta (would this work?)

I am starting an online b2b networking portal. It is somewhat comparable to linkedin in a sense that most of the content is user generated, meaning more users it has more attractive service becomes. ...
3
votes
4answers
193 views

Charging different rates for different services?

As a freelancer I am putting together a strong online portfolio/website to offer my services. I am putting the usual things in (blog/about/portfolio etc.) but I was thinking of creating a few pages ...
7
votes
1answer
335 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 ...
1
vote
3answers
161 views

Choosing a pricing structure

I currently provide an online service where I sell "credits" in blocks. I sell them in blocks for $10, $25, $50, and $100. At present the unit price per block is the same (e.g. 30 cents per credit, no ...
2
votes
2answers
262 views

Pricing it right

I don't have retail experience and what I need to price is SAAS, however I am aware of the psychological factors when it comes to pricing. $19.95 is a heck better than $20, even though the price is ...
1
vote
2answers
57 views

Smaller Project for Free Open Source as Leverage

Is it smart to release a small project as free and open-source to display my abilities as a programmer. I don't mean that in a "Hey, look at me, I'm awesome!" way. I mean it in a "This is the quality ...
1
vote
3answers
218 views

Pricing strategy for digital media applications

I am developing desktop application for digital media. But i am still not sure how to set price for the application. Actually our product is integrated solution which integrates different features ...
5
votes
4answers
341 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 ...
2
votes
4answers
129 views

For market segmentation pricing… what is better for a software product: by features or by capacity?

what do you think is a better style for market segmentation pricing of a software product?... Option A: By features (Spreadsheet software example) - Edition Lite: $100 (features: macros and printing) ...
2
votes
3answers
262 views

Free trial in a tiered SaaS application

Suppose I have a SaaS application which has several subsctiption plans (think "Basic" for 2 users and this much of storage space, "Starter" for 5 users... you know the drill) What will be the the ...
1
vote
4answers
177 views

Can we adjust our yearly maintenance charges to customers to inflation?

We are currently building an application which will be licensed to customers. Customers then pay $x a year to for updates, maintenance and reviews each year. Would it be practical to adjust the price ...
1
vote
2answers
362 views

price comparison business model

I would like to know how price comparison websites make money. Do use pay per click or other revenue models? Please be as detailed as possible and cite your sources. Thank you!
1
vote
3answers
87 views

Pricing for the premium content?

We are in a process of launching a new start-up. It is a web based software application/platform providing business networking services. Although not directly comparable, however for the illustration ...
0
votes
1answer
151 views

Paypal Integration - collect fees and take cut?

We are currently building a web application that will help people organise their clubs. As part of this we would like the users of the site to be able to collect payments for their events online. For ...
9
votes
3answers
300 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 ...
3
votes
4answers
269 views

Should I charge more or less for monthly-subscription payment (vs the single one price)?

I'm building a software product that I will charge for X amount per license. Also, I want to give customers the chance to pay a monthly-subscription. Note: In both cases they will have access to the ...
0
votes
2answers
235 views

Subscription pricing for iPhone app

Are there any examples of selling iPhone apps - other than weekly magazines and the like - using a subscription model instead of a one-time app store purchase?
1
vote
3answers
208 views

How feasible is a business model that sells fan T-shirts / cups for a small website?

I was trying to understand the concept of the business model of Kingdom Of Loathing They were doing stuff like selling T-shirts and cups, so basically I was wondering what are the benefits for going ...
1
vote
2answers
111 views

Dilemma with pricing of a b2c site

I have a MVP for a B2C website live and am in the process of deciding the pricing and plans for the fully functional site. On doing some research on the competitors, it appears that they are ...