Is a $250 lifetime subscription too much? Too little? How did you land on your pricing?
I'm building my first product and have everything pretty much nailed down... The cool thing is I finally followed the old mantra - build something that you need and want to use yourself. However, I'm stuck on pricing, as everyone is.
It's a simple service that allows parents to preserve memories they share with their kids, be it photos and videos, or letters to their future grown-up children with stories, life lessons..., all of which will be delivered to the kid when they turn 18 -think of it as a memory time capsule or a version of qeepsake.co but without the instant delivery. these are memories for your kids, not for you :D
Now I'm racking my brain on what to charge for this service. There is some significant cost on my side, so I can't go too low. I'm sure I want to offer two price tiers: an annual subscription of 35 euro/dollar per year (cancel any time and all the data will be still sent on the 18th to your kids, you just can't send any more in) and a lifetime one-time purchase (yeah, technically, only 18 years) at 250 euro/dollar.
Yes, I know I should be testing pricing to see what works. But I want to know - where did you start? How did you go about figuring out that first pricing to try? I asked a bunch of parents I know, they all tell me this is fair pricing (especially the lifetime one if it is given as a gift to other new parents), but I'm still skeptical - I want to hear your strategies.
Don't come up with numbers yourself, let your active users tell you what's a banger deal for them. You might be underpricing your product.
https://www.youtube.com/watch?v=f_nK9TPwxu0&t=4s
Thanks for the great video!
It's an interesting idea, but it's a very long time commitment on your part.
Let's say parents of a newborn buy now, you've got to hold that data for 18 years. That's a long time.
What happens if 3 years down the line you're no longer interested in the project?
For your pricing, you should consider that. The project must pay enough so that you'll be motivated to keep it running for a long time, yet low enough so that people are willing to pay for it.
You also need to consider a plan for backups as if people depend on you for their keepsakes, they'll be pissed if you lose it.
Good luck with your project.
thanks for the good wishes :D the good thing is that it will be hard for me to lose interest. so far, most of the delivery is automated and does not require much activity from me for the thing to work for 18 years. i'm still trying to work out a deal to ensure that the project will be hosted and continue to run even if i'm not here to take care of it, with minimal input from whoever would run it
yeah, backups are a must. of course. so far have two different backup options - one cloud and one hardware backup option, but looking to add more
Prices aren't set in stone. Pick a price and just try to sell it.
You can always change the price later once you know more. New customers will just pay the new price.
I wouldn't, however, recommend a "lifetime" plan though. Your costs will continue monthly and/or yearly. Don't end up in a space where you're paying to support a customer that isn't paying you.
yeah, i'm pretty sure i will have to shift prices around. just not sure where to even start, how to gauge the interest of the buyer at a price. i'll just have to test it out :D
i totally understand the warning and agree with it, but the "lifetime" plan won't be that much cost to me. it's mostly cold storage for 18 years. I priced it out and should be good
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