How to price SaaS, Need advice

1 pointsby ghostmatt4 anni fa1 comments

I am building an online marketplace for service providers. The service provider will have the option of two profiles, basic vs. premium profile. My current thoughts on pricing structure are as follows.

Basic Profile - Limited feature set - Free + transaction fee

Premium Profile - Full feature set - $25 a month + smaller transaction fee

How large should transaction fees be in order to not have vendors move off platform / be discouraged from working with us but still enough to make some money? What’s the sweet spot?

Should the transaction fee be taken from the vendor side or on the customer side as an additional charge at checkout?

Should there be a small flat fee put on transactions?

Any other things / options to do?

Any advice on this would be greatly appreciated

1 comments

tirrellp4 anni fa

Without knowing your customers, your product, your industry, or your use case, its difficult to give pointed advice. Here is some generic advice:

- You need to learn more about the value proposition of your product so you can best align price with value. If your product saves me $1m/year, that will have very difference pricing than if it saved me $100/year

- If adoption is what you're optimizing for, I'd be in favor of having a completely free tier (even free of transaction costs) up to a certain level, then billing turns on after you reach that threshold. This means customers invest in wiring into your product because it makes them money. By the time they reach the billable threshold, they already see the value prop and happily pay instead of rewiring everything to a new platform.

- If early revenue is what you're optimizing for, start charging immediately to get some intelligence about what customers are willing to pay. If you get some early customers on an underpriced version, thats fine. Grandfather them in under goodwill (for now) and adjust the pricing for net new customers.