Charge X based on value?
Based on the below facts and that my product value is based on quantity.
-
Currently my product provides X value while my competition product provides 9*X more value.
-
It might be secondary but my product has a cleaner design and look.
-
My competition charges 10$/Mo.
-
My product value will grow with time.
How much should I charge currently?
Trending on Indie Hackers
Don't undercut yourself and dig into understanding the difference between perceived value and actual value. People pay for perceived value. If you price yourself low enough to undercut others it will more than likely not drive your sales. It's a zero-sum game.
My plan was actually to charge 12$ (2$ over competition), this way I don't start a pricing war.
How do I create higher perceived value when it's clearly visible he got more quantity (=value to customer)?
You could do better on a subset of the features your competitor offers, usually that would be the core feature set. Less quantity but higher quality. For users who only use those features, your product could show a higher perceived value.
Good idea. Without knowing the context of what you're doing, it's hard to answer that. Is quantity the only measure of perceived value for your business?
Mostly. I do offer two more features but they are secondary and mostly increase the perceived value (hopefully), but yea, people pay and care for the main thing mainly.
Quantity (value) will grow with time, as it depends on users contributions, so I guess I will have to focus on promotions/marketing to fire it up really.
Sounds like a good game plan to me. 👍
It looks like you are talking about usage-based pricing. Is that correct? Quantity is not necessarily equal to value.