Pricing relative to competition
Hey guys. I'm building a niche SaaS product for CNC shops and could use some advice on pricing. There is an incumbent in the space I'm in: http://bit.ly/2hffYrv
My product is virtually identical, but with specific features for laser cutters (a sub-category of CNC machine).
At this point the product is ready to launch, but I'm not sure how I should price relative to the competition.
- Slightly lower
- Massively lower to attract users from the incumbent
- Slightly higher to reflect added value to the more specific niche (laser cutter shops)
- Exactly the same, copy their pricing wholesale
- Something else?
I'm leaning toward slightly lower (maybe 10~20% less) just for comparison's sake, but what do you think?
excellent ideas here, I think I will go with same pricing and see what the market responds to. Starting high and offering discounts is probably a safe approach to finding the optimal pricing.
I'd either go MASSIVELY lower or else charge at least as much as the competition. If you charge 10-20% lower, you may actually have fewer sales due to appearing to be an inferior alternative.
If you can charge 90% less though, all that goes out the window and you could get more reach (if your niche is big enough). That's risky though, so I'd start charging the same or more, learn about the market more and then go for it.
This comment was deleted 7 years ago