Help me with Pricing
We have built a tool which is an interactive e-learning and training tool designed for businesses to improve the e-learning experience. This allows users to upload company documents and the AI creates a series of interactive functions from this including a course, quizzes and assessments. We also create roleplay training for staff engaged with email and live chat providing real world scenarios.
This was initially built on no-code and we attracted a large, national tourist board who paid upfront so we built this out in code. This has led to more in the niche but now I'd like to roll this out more as a SAAS.
Question is pricing - how do you approach this?
Our model was set up for initially to be a monthly fee of around $195 with a setup cost of $499.
The tangible benefits are significant to any HR dept or any business who even employs a few members of staff. Reflecting this in the pricing whilst making it a no brainer is the key.
@Rtg123 is the national tourist board already paying the $195 / mo price? If yes, how easily did they agree to it?
General when it comes to price optimization I think the best way is to experiment. Keep increasing the price every time you talk to prospects and stop when the balk-rate gets too high
I feel like that would have an easier buy with a yearly package with some expandable free trail that lets them see the output before committing.
Why do you feel a need for a setup cost? Are u doing lots of manual work onboarding?
The benefit to the user is probably yearly if it's like repetitive compliance training or onboarding
Your doing 4k$ sales, maybe it's not much for self service, more of 1:1 sales with demos, so you can flex pricing by company size...
I did think about Annual too.... so you think this could be an idea rather than monthly. I guess there is so much written about the importance of MRR it's easy to fall into that trap.
We do need to do some manual onboarding but if can acquire clients at $4k py we can absorb.
The scalability for the tool is wide so we didn't want to be out of reach to smaller companies either.....which is why the monthly works well.
Your monthly doesn't work for what I'd call small companies as it's still a 4k$ a year with almost 1k$ just to start
But to each its own definition of small companies, I think you would probably be targeting minimum of 50 ppl and probably soon come up to 200 minimum and possibly 1,000 for the best returns
Maybe I should clarify context, this is indie hackers if this was yc/startups anything under 100m$/year revenue is small
Yeah I agree.
Would you think users would be averse to a pay per usage model?
So the OpenAI API is difficult to estimate actual cost so we can offer them the option of there own OpenAI key or a pre payment credit. I believe we can track the user so can directly associate the costs and usage
What's the usage here? Attach the pricing to the user benefit - number of documents, people training or combination