Hi everyone. This week, a difficult topic when launching a company. 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.
Meetings normally ended up without us mentioning the price. We didn’t know how much our costs would be.