Need advice on launch pricing
I am in the process of privately launching my app to a small group of launch partners. It’s a B2B focused app targeted at a niche market. It’s a data analytics and pricing intelligence tool so having data is essential. I guess you’d call it a micro-SaaS app. Pricing will generally run from $2k to about $15k per year. I’ve offered to discount it 50% in year 1 for a small number of launch partners (goal of 10-15). Here’s my question - should I get more aggressive, say 75% discount just to get launched and get data in the system, as long as these partners are paying something so there is skin in the game. Getting the platform seeded with data is a priority but so is building a viable business. I literally just showed the product for the first time and offered this pricing structure today so I’m not sure if there will be much objection to it yet. But I don’t want to be penny-wise and pound foolish. What are some best practices with pricing for launches of new products? I own another highly profitable professional services firm where we don’t discount so I am used to generating revenue/profit. Would love some insights.
I would say if your small group of launch partners are already interested and willing, why discount even further?
A 75% discount sounds cheap, and almost too good to be true, almost devaluing your product just to get people on board.
In my opinion I say you should stick to your guns and at most offer a 50% discount in the first year for what is essentially your first beta users
Good luck!
Thanks for the advice! I'm still going back and forth on this. My first instinct is to do exactly what you're saying. But these launch partners are hemming and hawing a bit about the pricing for the first year on something they think is cool and valuable, but still unproven as to the impact on their business because it lacks enough data to provide utility. It's kind of chicken and the egg. With data, the tool becomes really valuable, but without data it's just something cool. The amount of data this small group has will make it easier to sell to the next round of users. This is a hard one.