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by MicahWedemeyer 5878 days ago
Looking at the pricing, my first thought is "Wow, that's cheap!" I don't know how that converts to US dollars, but it seems way low. I think you'll want to raise your monthly fee considerably, on the order of 2-3x that amount. Or, consider offering multi-tiered pricing (more on that below).

I run a startup (http://doleaf.com) that also deals with small businesses, and they require A LOT of handholding. Plus, they'll always want to talk with you and tell you how to do things (which is both good and bad). All that time should count in your head as work time (believe me, it's way tougher than writing code) and you need to price things as such.

I suggest you definitely consider multi-tiered pricing based on the number of members in the loyalty program. Ironically, I think your bigger clients will probably need less handholding, but they can help subsidize the time you spend working with the smaller ones.

Overall, I think this is an excellent idea. Are you considering accepting customers in the USA? This might be a good fit for some of the nurseries I work with, and I'd be happy to pass it along to them.

1 comments

It's very likely your pricing is too low.

If you're new to pricing consider reading this short free ebook on pricing written by the CEO of Redgate software: http://www.neildavidson.com/dontjustrollthedice.html. It will help you think through how to approach pricing your product.

Your pricing should be based on what economic value you deliver. Since that value will be different for different customers you should tier your pricing.

Figure out one or a handful of the key levers that drive that value. For example, in your case it might be number of their customers that are part of their loyalty program or the total transaction value tracked or something else. Someone with 1,000 customers tracked vs. 5,000 are going to be getting a different amount of value from you and ought to be paying accordingly.

Thanks - I have been meaning to have a look at Neils book.

Pricing is difficult - I want to be able to show ROI to something like a small cafe or restaurant.

Tiers might be the answer but at the same time I want a really simple pricing scheme, and will probably defer the choice till the user is more familiar with the system when they have more knowledge about what they might need.

Tiered pricing is (usually) dead simple to understand. As their program grows, they climb the tier.

I'm a mailchimp customer and that's how they work. Once my list reaches a certain size, I pay a higher monthly fee. Nothing complicated about it. Plus, I don't even have to "decide" anything. They automatically calculate my tier based on list size. I'd say you're in a nearly identical boat.

Before the pricing focus; a detailed analysis of the true benefit to customers has to be fully harnessed in order to make the sale. I get the feeling from the site that you understand that these programs are beneficial but don't have a recognized value to the customer. Without a sense of Value, Cost is irrelevant.