I'm building a database to sell information on employment contracts and comparisons (terms typically found, what they mean, analytics on what percentage of people have them, etc) and am trying to figure out my pricing strategy. Users submit their information to get our information (similar to Glassdoor), so volume is important early on to continue building up the database. I've always read that 3 pricing options is the way to go - Low, Medium and High. What are the pros and cons of a transactional (one time) model versus a subscription model? How do you price this out if you offer both?
After having gone through all the different options and creating a shortlist of feasible routes for your company, you must do the hard work of executing and setting the final pricing strategy. The first thing you should know is that whatever pricing strategy you choose, this option will define the business entirely, from how revenue will grow to how the actual business and team will be built. It is quite different to set up a company that sells through a SaaS model compared to one that sells through a one-time purchase strategy. The second thing to keep in mind is that the choice of a pricing strategy and pricing level is a process, and this process must be repeated periodically during the lifetime of the business. During the process of selecting a strategy, you must first conduct deep customer research. The only feedback that is worthwhile comes from customers that have bought your product. Anyone else will probably not have thought through the problem as much as a real customer that has a real need and has paid money for the service. Do this with different pricing levels with different customers, and you will have great insight into different customer segments. This exercise will allow you not only to stay abreast of what your customers demand, but also what the competition is doing, and be able to adjust accordingly. This can lead to a situation where they are selling themselves and their product short. Also, thinking that this client resistance is only due to high pricing can be a distraction from other key problems that are the real reason, such as a flawed product-market fit. A company should avoid putting their potential clients in a similar situation. This will help you with cash flow and the customer will perceive a direct benefit thanks to his loyalty to your product.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
Answered a year ago