How did you set your pricing?
The advice I've heard is 'always charge more'. Sounds simple, yet I know that many IHers struggle to figure out their pricing.
So tell us:
- Your product + link
- How did you determine your pricing?
- Leave a comment or feedback for someone else if you have tips or feedback on how to price their product.
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I’m running a productized service, not a saas, but hope this helps someone in a similar situation.
Decide on the profit you’d like to make — I suggest to set a 50% profit margin and adjust from there.
Decide on your pricing model — I went ahead with a subscription-based, unlimited graphic design model. Customers pay a fixed fee each month for as many designs and revisions as they want until they cancel the service.
Decide on how many people you’d like to serve — I’ve chosen to provide an affordable service to go for a bigger volume of the customer base, rather than charging a high price with a small customer base.
Decide how many customers each designer can be assigned with — like freelancing model, each designer will have a batch of customers to serve every day.
Enter the estimated cost of operation — anything that incurs costs to run your business. Such as internet, web and email hosting, hiring, automation tools, taxation, your salary, etc.
Add any income from personal projects
Run your projections — use your costs, assumptions and profit margin to decide your pricing by plugging in the above into a spreadsheet.
I’ve got a whole guide with this at productizedkit.com if you want more detail, my service product is at meetanders.com
www.fetchforms.io
I set pricing based on competitors and similar (headless) products. Since I built Fetch Forms to scratch my own itch, the final decision on pricing came down to "would I pay for this?".
I'll give the podcast a listen!
One thing that is important to have in mind is that you should not price your product based on how hard it was for you to build it but rather based on how valuable it is for the users. I recently increased the price of my community and before doing so I asked the members for their opinion and based on that I defined the new prices.
I just spoke about it in my most recent podcast episode in case you are interested