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

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5
votes
4answers
186 views

Researching Competitors Prices

I am starting a company and don't have any major competitors other than one company (who has a similar product and a huge market-share). Sadly this company doesn't sell its product online, you have to ...
5
votes
1answer
287 views

Where is the Price Point of Indifference for SMBs with a Web Presence?

Internally at our startup, there's a lot of belief that at some price between $15-$35/month, small-medium businesses are both: A) Much more likely to convert and try a SaaS product B) Much less ...
4
votes
8answers
771 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 ...
4
votes
7answers
140 views

Should security updates be free?

A customer has found a serious security flaw in my software, over a year after their support period has ended. Should I provide a free update? The upgrade price is substantial, so I don't want to ...
4
votes
6answers
171 views

Getting paid according to what a company saves

I am considering creating a solution, which would save large companies time. I am certain that they would save this time, so I am willing to sell my solution for a price that is proportional to what ...
4
votes
7answers
384 views

Resources or guides to software product pricing

We found product pricing to be the hardest part of launching our product. What resources or guides (online or offline) have you found useful in thinking about pricing your product? I'm interested ...
4
votes
6answers
363 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 ...
4
votes
5answers
410 views

Do my prices make me seem unprofessional? Should I even list them?

I started a small web development company with my friend. When we talked about the services we were going to offer we obviously also had to talk about how much to charge for these services. What we ...
4
votes
7answers
2k views

Software Outsourcing Price Comparison

Does someone know where to find any information about price comparison for Software Outsourcing across different countries?
4
votes
5answers
183 views

Reagrding pricing …Should it be few big fish or many small fish

We have software which can run as per user SaaS model and also as custom deployment. To advertise we are planning to host it and give it free for some time / users. But there is another argument as we ...
4
votes
4answers
160 views

Looking for first customers; is it a good idea to offer our services completely for free?

We are going to creating a start up that offers services to biotechs; our deliverable is to discover bioactive compounds in a given biological context (such as pharma). We want to follow some of the ...
4
votes
5answers
632 views

How should I price our SaaS for resellers?

Our product is a platform for organizing health related games. Our customers are corporate wellness coordinators, and the games are played in the context of their company. One of our strategies is to ...
4
votes
2answers
165 views

B2C - Should I have a free plan?

For a B2C subscription service, is it recommended to have a free plan? Based on my research, users who sign up free plan suck up a lot of support resources and a number of well known services have ...
4
votes
2answers
191 views

Crossing the chasm - your advices for single guy moving a product from free alpha to paid beta stage

I'm a developer and I work in my spare time on a small mac app: http://totalfinder.binaryage.com Current stats: 15K users (who are updating the app with every new release) the web ~500 daily ...
4
votes
2answers
884 views

Pricing Model - Copy, or Create?

We've got a few competitors, one of whom is the "Big Fish" in the market. I've priced all of them out, and they have various pricing models - each different from the others. And the "Big Fish" has a ...
4
votes
2answers
116 views

How to fund start up through a one off project and turn it into a product rather than a contract piece of work?

Background: I have been asked by a company to put together a proposal to build a highly specialised piece of software. The company is a new player in the financial sector who needs to have this ...
4
votes
3answers
188 views

Should my web agency have different rates for design, programming, SEO, etc?

My small agency handles everything web-related for our clients, including domain registration, hosting, graphic design, back-end programming, ecommerce, search engine marketing, etc. Historically we ...
4
votes
2answers
177 views

Need advice on setting country-specific pricing

We're a growing Canadian software company selling online. Customers download freeware, later upgrading to a paid version. We've received significant interest from customers and resellers ...
4
votes
4answers
197 views

Proposal Presentation: Proposal Before or During?

For complex and relatively high-dollar sales (five to six figures), it's a common practice to present the final cost in the form of a proposal, and to present that proposal in person, instead of ...
4
votes
2answers
342 views

Changing SaaS pricing model from 'per month' to 'technology fee' paid by end customer approach

We have a niche Saas product that is essentially a very specific ecommerce portal and management system to allow businesses to sell memberships to their customers. Currently, pricing is based on the ...
4
votes
2answers
164 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 ...
4
votes
2answers
342 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 ...
4
votes
1answer
528 views

How to price a software “per project” relatively to its “per seat” price?

By targeting multiple segments, we have to price our software according to different schemes. We are currently thinking about defining a "per project" license. We are doing the following computation: ...
4
votes
2answers
197 views

Startup discounts

I have started interviewstreet.com recently (helps in screening programmers). We have got around 10 paying customers who pay between $x-$y a month for the same product , same specifications, etc. ...
4
votes
1answer
226 views

What's the equivalent desktop price given a web application price

So I found pricing information on the established leader in the market my product serves - HR Software. They don't show prices on their site so I thought I'd google to see what I could find. Theirs ...
4
votes
3answers
157 views

Pricing for service maintenance

To all pricing guru out there, I've developed a web application that we've been using internally for a while and we are looking at selling it as a product in its own write. It is a very niche human ...
4
votes
2answers
3k views

How do you price a technology licensing/white-labeling agreement?

We built a consumer facing web app and have been growing our user base by iterating on the product for a little over a year. A large media company has inquired about licensing our technology to power ...
4
votes
1answer
213 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 ...
3
votes
4answers
192 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 ...
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 ...
3
votes
7answers
276 views

Should I charge for my service or not?

I have a product in beta (which is a minimum viable product) and am working on the release version. I had my early adopters take a survey and although a majority of them had great things to say about ...
3
votes
6answers
317 views

How do you choose the base currency for online and mostly international sales?

We are about to launch a website offering products. My "gut" feeling is that a good proportion of our customers will be based in the US. We are currently based in the UK, though that is likely to ...
3
votes
6answers
358 views

Web app pricing in EUR or USD?

I'm about to launch my own web app. Being in Europe and thinking about pricing I'm wondering if I should charge in EURO or US DOLLAR? I have no concrete numbers, but I expect 70-80% of the customers ...
3
votes
6answers
249 views

Pricing of a feature/product

I recently quit a big MNC to start off on my own. I have built a B2B(Business-to-Business) product but not figured out how to price it. Please tell me if my approach is right. I was earning $x/hour ...
3
votes
2answers
134 views

Does it make sense to give the customer the option to either pay by the hour or a fixed rate?

I am a freelance software developer My process of getting work is typically: Find out about potential work through some channel (people I know, former employers, job postings etc.) Set up a ...
3
votes
4answers
332 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 ...
3
votes
4answers
321 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? ...
3
votes
5answers
674 views

Strategy for pricing a desktop application

I'm trying to figure out how to price a desktop application that I'm currently developing. I have read a few articles on the subject, but I'm unable to come up with a clear path. A bit of ...
3
votes
6answers
338 views

Can Price be the ONLY competitive advantage?

I am just venturing into a new product and one thing I realised is that "Price is the ONLY one advantage" I have. I have solid web-development experience and I can build web apps in a fraction of time ...
3
votes
4answers
142 views

Semi Start-Up - Pricing Negotiation

I'd love to get your feedback on the following: After several months of talking with the directors of this firm, I am near to closing the deal. Overall, they love our solution and want to move ...
3
votes
6answers
1k views

How do I create a pricing scheme for my creative consulting company?

My company consults companies on creating websites, branding, online video promotions, and mobile apps. One aspect of our service is the consulting side, the other is project management, finding the ...
3
votes
6answers
195 views

Is being a low cost provider worth it?

I have a free utility for online sellers. Recently, three of them contacted me independently, asking whether I could add some features to it and make it into a low cost order processing system, ...
3
votes
4answers
262 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 ...
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 ...
3
votes
2answers
156 views

Webdesign business, show price or not?

We are webdesigners, and we sell websites, we are about to renew are website. Would you suggest to show some prices on our website or not? I mean stuff like like: "we sell 2/3 pages static website ...
3
votes
7answers
512 views

How can I encourage big customers to pay more for my product?

What strategies do you use to offer a range of prices, while encouraging big customers to pay more? I offer a range of prices with different restrictions. I didn't want to exclude individuals, but ...
3
votes
3answers
193 views

Are there any reasons not to sell software to large enterprises solely for a quarterly fee?

I am about to give an offer for software to a large enterprise. I know that it is normal to say that there is an upfront price for software and a yearly maintenance fee of around 18% of the upfront ...
3
votes
4answers
256 views

Should I raise the price of my product?

I'm the owner of this site and the product offered there. As you can see, the current price is $29.95. It is very cheap compared to most web scrapers like this. There are two reasons why I want to ...
3
votes
4answers
148 views

What Is Your Opinion On “Freebie Marketing”?

From Wikipedia - "Freebie marketing, also known as the razor and blades business model, is the concept of either giving away a salable item for nothing or charging an extremely low price to generate ...
3
votes
3answers
201 views

How can I price my SaaS app better?

This is what my current monthly pricing is: $29 for up to 50 users $149 for up to 150 users $299 for up to 300 users Pricing on request above 300 users A few things to note: This has to be a ...