Different Pricing Options

2 replies
Hello Warriors,

Lately I've been thinking about different pricing options and I have come up with 2 options.
1. Mostly used tactic charge one time fee (e.g $399 plus small fee $39 p/m)
12 month earnings- $867
2. Charge $77 and up per month with no huge set up fees.
In long term second option is better. What do you think about it?
#options #pricing
  • Profile picture of the author DABK
    What makes 1 or 2 better is how you present them.

    Question for you: how do you know they'll stick with you for 12 months? You lock them into a contract? Or you have experience and your experience says they stay with you for 12 months on average?

    I mean, I've seen people stop a thing that was very profitable due to non-thinking things true or because they listened to some idiot who convinced them they could do the same service by themselves (which was not true.).

    From your point of view, in other words, option one is better: you're sure of more money with option 1.

    Originally Posted by locmanis View Post

    Hello Warriors,

    Lately I've been thinking about different pricing options and I have come up with 2 options.
    1. Mostly used tactic charge one time fee (e.g $399 plus small fee $39 p/m)
    12 month earnings- $867
    2. Charge $77 and up per month with no huge set up fees.
    In long term second option is better. What do you think about it?
    {{ DiscussionBoard.errors[9782982].message }}
  • Profile picture of the author iAmNameLess
    I personally think option 1 is the best. Like DABK said, how do you know they will stay with you that long?

    With the amount of competition in this space, your clients are getting bombarded with phone calls, emails, mail, and your competition is trying to take them away from you. Sometimes it works... I've had a client that spent $1,300 and in 4 months he cancelled the service to go with another company... then he came back after another 5 months and spent an additional $1,500 on a new website... LOL. Money today is better than money next week or next month.

    The way I see your option is this... $399 upfront. vs. $77/mo.

    It will take 5 months at $77/mo to make $385.

    Over the course of a year option 1 makes you $867. Option 2 makes you $924.

    Even though option 2 makes you more over the course of the year, you're actually making it a higher risk option. It's higher risk because you're counting on someone to stay with your services, you're not getting paid up front, and since you're surviving on recurring income it's higher risk when you lose someone.

    I think option 1 is the winner.
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