Use good invoicing/billing software that allows you to discount on a per customer basis.
Start with two price points: one targeted at price sensitive customers, call it price A, and one targeted at price-insensitive customers (think enterprise), call it price C.
Set price A lower than you think - you can always add features and raise later to the point that people start to scream.
Set price C at much higher than you think - use volume discounting to offer discounting where needed, but this is your anchor point for conversations with big customers.
Consider whether price A is your acquisition channel or if you will have a "free" tier. If you don't have a free tier, you can feel fine with a lower than optimal price for tier A, as this is your conversion channel to price C.
Eventually you'll want a tier between A & C (call it B) to anchor pricing and encourage people to choose A or C. Refer to research on movie popcorn prices.
> Set price A lower than you think - you can always add features and raise later to the point that people start to scream.
Set price A higher than you think. It is easy to lower the price later or to give -30% to customers and have them think it's a bargain. A higher price tag will confirm that your product is valuable and useful and you've got a market.
If they don't want to pay, you need to make a better product, or sell harder, or market it better. You don't want to fight for cheapness, cheap customers are cheap, annoying and they won't cover the costs to run the service.
Agree. My experience in pricing was that we were locked in to the initial price we set. (And the CEO did it by accident. Oops.) No one could stomach raising it.
Then again, we didn't actually try raising it and face backlash. It's possible we were just too cowardly to try and fail.
I tried something similar... Our CEO set the price of our email service too low (oops). But unlike you we faced the music and doubled the price only a year after. The backlash was much smaller than I anticipated. We marketed the price hike by adding some requested features and made the payment term half as long so the price seemed to be the same. This made it easier for our customers to swallow. Of course we lost customers, but not enough to make a difference (about 5%).
Don't agree with this at all. Pricing should never be up to the client and their ability to pay. And also, you will have to keep track of every customer and their individual prices which would be a mess to keep track of.
You have to remember that most industries are very incestuous with people moving between companies within that industry. So what happens if someone from a price-sensitve customer (price A) moves jobs to a price C company and tells the new company the low price that their old price-sensitve company was getting? Price C company will demand that price (as I would) and then you're in trouble.
I make things simple. I charge the same price for everyone with discounts for volume. That's it. Nice and clean.
Is there a way to match pricing to how busy it is? like i want to charge customers $100 to post an ad to sell their used tesla BUT if its slow then i wanna be able to reduce it to , say, like $50 maybe even free when its damn slow, like during the weekday or something. maybe automate it ?https://onlyusedtesla.com/
Start with two price points: one targeted at price sensitive customers, call it price A, and one targeted at price-insensitive customers (think enterprise), call it price C.
Set price A lower than you think - you can always add features and raise later to the point that people start to scream.
Set price C at much higher than you think - use volume discounting to offer discounting where needed, but this is your anchor point for conversations with big customers.
Consider whether price A is your acquisition channel or if you will have a "free" tier. If you don't have a free tier, you can feel fine with a lower than optimal price for tier A, as this is your conversion channel to price C.
Eventually you'll want a tier between A & C (call it B) to anchor pricing and encourage people to choose A or C. Refer to research on movie popcorn prices.