Product Development July 7, 2020

I added too many features and struggled to price my product

Leo Nagano @Leo

Hi everyone. This week, a difficult topic when launching a company. Pricing model.

My takeaways

  • Don’t charge too little, companies won’t trust you
  • Find out the sweet spot. The price you can charge without needing approval from different areas
  • People have no time. Make the sales process easier. Give the cost straight away
  • Create a product with the killer feature and launch. Easier to put price

pricing IH

Pricing Model

At first, we thought of charging per user, as it was normal with B2B. Does it still is? But we wanted to reach as many users as possible to spread the word in the client. So, we rejected this option.

Well, we then decided to create a starter kit of 5 KPIs. Now, how much to charge for it? This is where the problem began. Why?

Amazingly flexible product, work on any industry, can fit anywhere. As we went to meetings, the reality hit.

Each KPI could be a combination of several databases or webservices. It could take 1 week to set up one single KPI. Talking to data department, end users, IT, authorisation to read from those tables! Different clients, different databases. We needed to navigate in their org chart to create the dashboard. A painful process.

That’s why our first client came from former colleagues working in the company, which made things easier to understand, in terms of structure and how to get data.

With experience from the first 2 clients setting up KPIs, we decided to give the next clients a fixed price straight away. We ended up with 4 clients in total, with many projects in those clients.

Well, we don’t really know how much it will cost

meetings

Meetings normally ended up without us mentioning the price. We didn’t know how much our costs would be.


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  1. 1

    Hi Leo --

    I've ran 2 high profit companies, if your at the stage where you're pricing your product and trying to figure out how to create MMR I'd be open to giving you some insights

    if you are interested my discord is: do#3695

    1. 1

      Hi, this is a product I had in the past. Forgot to mention that in the article. Thanks for your help. I believe it resonates with a lot of other Indie hackers out there

  2. 1

    This post definitely applies to everyone of us selling something. Of course nobody has an idea how much anything actually costs, that's why asks are paid :P