Pricing
by Dmitry Dryomov#Ask-IH I was thinking about pricing. I don't get a clue.
I doing a service to find a next book to translate for a non-US publisher. So it's a B2B market.
I don't have any sales yet. However, I have some interest and discussion with the potential client. I want to estimate what could be the price. Both for the "MVP" and for a more or less final point.
This is the info I collected so far:
- There is a market for such a service. Literature scouting agencies are providing such a service.
- Agencies exclusive contracts. It's one client per country per book type (child, fiction, non-fiction). It could be around 10-30 clients in total for an agency.
- I get a piece of information that for the UK market it costs around 10-20k$ per year for an average publisher.
- In Russia, an in-house scout for this costs around 15-20k$ / year. Publicly known about one publisher. It has a team of scouts working on a task.
Should I anchor the price versus costs of an agency?
Or should I, perhaps, base the price on the cost of an in-house scout?
My main goal is to validate the business model right now. What is the price for MVP serving this goal?
What are your thoughts?
How would've you approach this?
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This comment was deleted 7 years ago.
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#2:
It's how agencies currently operate. It's also an order of magnitude number of clients. You can't supply the same information for many publishers in the same country.
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Helping vs replacing:
People are good with intuition and having a context. Computers are good with a massive amount of repetitive work. A service is solving the same problem in a significantly different way.
So, it's not so obvious.
In a small publisher, they would have no dedicated role for scouting. So, an editor would be filling it. For such a publisher it could be an alternative to hiring and training a dedicated person for this or a way to free some time of an editors team.
For a bigger publisher, it would make more sense to use it as an efficiency tool. I believe it could make one person as effective as a team of few.
It could be fewer people working on this task with the same result. Alternatively, it could give the ability to produce a higher volume / lesser risk for a publisher with a given team.
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This comment was deleted 7 years ago.
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Thanks for the specific number :)
It's less scary for me to actually think of something close when somebody else thinks this level of pricing could be reasonable.
It could be a good idea to make a discount.
It's still not clear if the discount would make it easier to sign those first clients.
I had a sales discussion today. It feels that it's more of a trust issue than price question now.-
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This comment was deleted 7 years ago.
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