How is it best to set the pricing for a specific-niche service?
I have created the first of a kind strategic prioritizer 1st things 1st:
https://www.1st-things-1st.com/
It's for people who want to prioritize their choices by multiple criteria and get them sorted by importance.
I suppose that people make strategic decisions 1 or 2 times in a year at most. So they would prioritize once or twice and then would live according to their plans. Making that assumption, I want to market my tool as a highly valuable investment with non recurring payments.
At the moment the pricing is set as 50-70€ per month for individuals, or 100-120€ per month for teams (where multiple people can use the tool together).
Is that a reasonable pricing? If not yet,
- should I rather ask for 100-140€ per year for individuals and 200-240€ per year and show the prices on a monthly basis with the possibility to only pay for the whole year?
- do I need to increase the quality to match those prices?
- do I need to introduce discounts?
- do I need to introduce affiliate links?
Price is never a concern of mine. If you demonstrate the value of service and you fill a void or fix a pain point someone has, people will always find a way to pay for it.
To add: assuming your product is SaaS you want to be hitting the 80-90% profit margin. Price accordingly. I.e: (X: What does it cost you to acquire a customer and deploy them > Y: how much of your time is spent acquiring said customer > Z: time spent supporting the customer) X + Y + Z = Cost to you
Hope this helps!