Pricing question
Hey Hackers,
I wanted to see if I could get feedback on a recent potential client pricing dilemma.
This client reached out to us to use our product and wanted to see what we could package for them. They are currently paying around $350 a month with their current solution. On a feature for feature level, we can't match.
We do have some features and a few competitive advantages over the competitor.
After exchanges a few emails to learn more about how much content they would be moving to our platform, we came in at $930.
I feel like the client will basically laugh at that lol and pass.
Should we be more competitive on the price? I'm worried that I would be biting more then we can chew.
You can also ask them to sign a year-long contract where they pay $930 monthly BUT only start paying after X months (the amount of time it would take you to build those features). That only works if X is in the 4-5 months range, otherwise it might not be a great deal for you either!
Thanks for the info. I'm more willing to discount to at least cover cost. Never free for me.
"We do have some features and a few competitive advantages over the competitor" - That might just be worth the higher $930 price tag.
If the price tag is too high for this client, your unit economics do not allow to match a $350 price tag and you don't want to run a loss leader, then postpone the sale. "We have one of the best service in the market because we are never cutting corners. We care. That has a cost: $930. If in the future we can deliver the same quality service at $350, you will be one of the first people we will call."
They did say "we are willing to pay more if we get more" so, I'm hoping he means that =)
Good luck! The says goes "It is $100. If they don't blink, add per-month. If they don't blink, add per-seat" :)
Hey Gabriel!
What I always ask myself when I'm in this kind of situation is: "Do I really want this kind of customers?" Meaning the type of customers the they want to spend less instead of getting more from their money.
Choose your battles wisely my friend :)
Well, they said, "we are willing to pay more if we get more". Trying to deceiver that lol. I'm hoping that they will see value in us improving thier process.
In what kind of product were they interested in?
We're a podcast hosting platform.
Try the higher price and if you get 10 no's in a row, then go lower.
Thanks, that's what I'm thinking. Just go with it.