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

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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 ...
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 ...
2
votes
2answers
259 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
1answer
182 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 ...
2
votes
1answer
104 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
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 ...
7
votes
1answer
325 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
158 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 ...
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 ...
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 ...
5
votes
4answers
339 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 ...
0
votes
1answer
67 views

How to project product pricing for medical college/school

Our clients are medical schools/colleges. We have given a free product trial for 2 months with our first client. It is a unique product, there's a great learning process and we have had an amazing ...
2
votes
4answers
125 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
175 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 ...
3
votes
4answers
261 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 ...
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 ...
3
votes
2answers
201 views

Mobile Software Pricing - How do I find the right price?

My startup is developing a mobile web application for an established enterprise ERP/CRM software package. The software is essentially a mobile web application that is installed on the customers ...
9
votes
3answers
299 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 ...
2
votes
3answers
646 views

Pricing Model for Consumer Product

I am involved with a product and have finalized the SRP and the wholesale price . We have been approached by a distributor that has a large niche customer base that would like to distribute the ...
0
votes
2answers
223 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?
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 ...
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 ...
1
vote
3answers
203 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
1answer
258 views

How Should I Price My Products or Services

Marketing your startup takes many forms. The classical marketing approach revolves around the 4 P’s: Product, Price, Promotion and Place. For this question and answer, we will tackle the Pricing ...
1
vote
2answers
109 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 ...
1
vote
3answers
143 views

Should I alter my pricing structure so that I can offer discounts?

I am in the process of developing a SaaS website and am going through the process of determining subscription levels and pricing structures. On top of the monthly subscription for the on-going ...
0
votes
4answers
71 views

What's the best way to offer an educational discount online?

I'm thinking about offering a discount to students for a software product. I may even give them free licenses. What's the best/easiest way of verifying that someone is a student or an educator? Would ...
9
votes
7answers
342 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 ...
0
votes
1answer
41 views

Finance / Interest rate question

Interest rate calculation (monthly versus yearly) I am trying to convince my CEO that it would be better to charge our customers who have an outstanding balance a 3% compounding interest rate instead ...
8
votes
4answers
992 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 ...
1
vote
2answers
350 views

How to assess the potential value of a website before its formal release

I have developed a website and now it is under internal testing. What does my website do? On the one hand, if you want someone to do something for you, you can use my website, and you need to pay the ...
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 ...
-1
votes
2answers
156 views

What can I do to increase revenue?

I have developed a tool, and I have gotten a great response from it. I have 400+ registered users and 15 paid users without any ads and stuff. Paid users pay $5.99/month to use this tool. Now I want ...
0
votes
1answer
69 views

Question about payment plans

I am working on a similar service like netflix but for foreign television. How much should I charge? $10.00/month? What would determine that for me? Also how do you think Netflix partners with ...
2
votes
7answers
1k views

Monthly or Annual Subscriptions? Or Both?

I wanted to know what people's opinions were on monthly versus annual subscriptions. If I did go with annual payments it would offer a discount over the month-to-month costs for the year. Anyways, ...
3
votes
2answers
237 views

Proper Price to Charge Clients for Various SLAs

I am the co-owner of a small web development firm. We offer Ruby on Rails programming for our clients which mostly consist of small companies. We typically charge $80-$110 per hour. For 2/3 of our ...
1
vote
4answers
166 views

How to communicate an increase in the yearly maintenance license?

I am selling an enterprise system. So far there has been no real sales-volume, so I do not have any price model to publish. The few customers I have are really happy with the solution. My question ...
5
votes
3answers
157 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 ...
3
votes
3answers
235 views

What is the right fee or model to charge professional services to an enteprise project?

I have seen some charge by the hour and others by the project...wha'ts the best approach and why? If you charge lets' say $1500 per day and your costs are a part time Project manager, a business ...
4
votes
5answers
625 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
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 ...
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 ...
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 ...
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: ...
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 ...
0
votes
1answer
118 views

One-day-access trial pricing plan

I have a Japanese learning community website... Currently there are three main plans... Free: Access some of the content (some 20 lessons, a few cheat sheets, etc.), for free, forever. This is ...
1
vote
1answer
171 views

What would you charge for this app?

We are in talks with our first app-development client, who are first-time app-development customers and have done no research on custom app pricing or gotten other bids. It's been a bit of a ...
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), ...
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 ...