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by AznHisoka 3996 days ago
This is one of the few useful products I've seen showcased in HN over the years (congrats!), based on concept - I haven't tested the implementation, but you've picked a great market.

One piece of feedback is that your pricing is way too low. Start at $99/month. Get rid of the free plan, as it accomplishes nothing for you. Most businesses are either mom and pop stores that will get by with the free plan, or businesses with more than 1 location. And the mom and pop businesses probably aren't the type of ppl that will write influential reviews that will recommend you to other users.

2 comments

Agreedo on increase in the pricing and removing the free tier. Free tier is where you will spend all of your time in support with not much to show for it. Maybe not $100/mo as that will prevent most of the mom and pop shops, maybe move the free tier to $20/mo and the real deal to $99/mo. Pricing is hard.
This seems like a very good pricing model. If he wants mom-and-pop customers to get a free taste, he can just make the first 30 days at the $20 level free.
Glad you like it! I thought about the pricing for a long time and since my costs are low I figure I could offer low priced plans and undercut any competition but maybe that thinking is wrong. The free plan is designed to give people a good taste of the product but it's missing key things like email alerts that make it really useful, I could see mom and pop shops upgrading just to get that feature. I like to keep the free version to give business owners a good incentive to sign up where I can hopefully upgrade them but maybe that is more trouble then it's worth. $99/month is a bit much but $40/month might be a better price.
One thing to remember about pricing, its nothing to do with your costs. Charge based on the value to provide and the customers ability to pay. I agree about removing the free plan, i'd have 3 plans, 1 at $35 for the mom and pops, one at $99 for your main bread and butter and then one at $499 a month for enterprise, where you offer premium phone support, training, and other general perks that enterprises love.

Give a 30 day free trial of the $99 plan and then make them pay after that. As others have said, people on the free plan will cause you 90% of your support problems and you're making no money from them.

This app looks like it will generate a lot of value and save a lot of time for businesses. So look at it from that perspective, not based on what your costs are. If you're saving just 5 hours a month in a mom and pop business, i'd argue that $35 a month is easily worth it to them.

I think i'll go this route. Would of loved to do freemium but based on how things went yesterday it will just suck up too much work to support properly.

Thanks for all the tips, very useful.