Questions

I have built a startup and am looking to offer it's services through a subscription model, but have no experience pricing something like this up. What are some of the key tips, things to think about and must do's when trying to create a subscription model?

You have two questions. One is how to actually establish a price or pricing plans, the other are tactics most useful after pricing has been established.

I think Laura provides some great tactics around pricing but as I read her answer, I think it addresses the tactics part less than the pricing part so I'll focus exclusively on how to find the right price.

First, I'd suggest you go to http://www.harrisonmetal.com/ and scroll down the page to find their workshops on pricing. I've attended their class on the subject in-person and they have published the course materials on their site.

Pricing is part art, part science. It comes from understanding what other offerings exist in the marketplace and how your offering differentiates. So for example, customer development that focuses on understanding how your customers perceive your offering against competitive offerings would provide clues and insights into whether it might make sense to price your offering higher or lower to your competitors. Pricing is also entirely dependent on it's related messaging. Decisions are made and confirmed by two entirely different parts of our brain, and so appealing to intuition or emotion without providing context for the logic/rational part of the decision will often fail to complete the sale.

Happy to talk to you about any of this in a call with you, if you'd like.


Answered 7 years ago

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