Comments on: Learning How To Price Your Web App http://www.bytesurgery.com/blog/2008/06/05/learning-how-to-price-your-web-app/ Digital Media Engineering Thu, 04 Dec 2008 19:55:36 +0000 http://wordpress.org/?v=2.5.1 By: Robin Blandford [ ByteSurgery.com ] » Finding That Price Point http://www.bytesurgery.com/blog/2008/06/05/learning-how-to-price-your-web-app/#comment-22322 Robin Blandford [ ByteSurgery.com ] » Finding That Price Point Wed, 15 Oct 2008 14:49:24 +0000 http://www.bytesurgery.com/blog/?p=382#comment-22322 [...] IRELAND - Today I’m looking at pricing Decisions For Heroes. I wrote this post about the beauty of unlimited during the summer. Time to dive deeper now and project figures from our beta [...] [...] IRELAND - Today I’m looking at pricing Decisions For Heroes. I wrote this post about the beauty of unlimited during the summer. Time to dive deeper now and project figures from our beta [...]

]]> By: Robin Blandford http://www.bytesurgery.com/blog/2008/06/05/learning-how-to-price-your-web-app/#comment-22297 Robin Blandford Mon, 06 Oct 2008 10:04:45 +0000 http://www.bytesurgery.com/blog/?p=382#comment-22297 Hey Jeremiah - Useful tips. Thanks! Your additional at a micro-costs idea has given me something interesting to play with. Hey Jeremiah - Useful tips. Thanks!

Your additional at a micro-costs idea has given me something interesting to play with.

]]> By: Jeremiah Ryan http://www.bytesurgery.com/blog/2008/06/05/learning-how-to-price-your-web-app/#comment-22283 Jeremiah Ryan Thu, 02 Oct 2008 22:31:58 +0000 http://www.bytesurgery.com/blog/?p=382#comment-22283 Comforting seeing someone else fighting with the same issues. Our small app has just launched so I don't have enough data (or customers) to give good anecdotal advice, however here are some basic rules we found useful to clarify our final (current) position:- (a) don't offer too many choices/'packages for the user to wring their hands over. Basecamp originally presented 5 or 6 but now publicly show 3 options. We had about five variations, hoping to hit the majority of what we though our customer base might need, but settled back to two basic packages in the end. (b) Each app market is different in subtle ways generally understood by the entrepreneur, however rather than having an unlimited use quota, give a usable quantity as part of a package and then additional at a micro-cost. (easily justifiable, but gives you a revenue ratchet. Same with resources) Comforting seeing someone else fighting with the same issues. Our small app has just launched so I don’t have enough data (or customers) to give good anecdotal advice, however here are some basic rules we found useful to clarify our final (current) position:-

(a) don’t offer too many choices/’packages for the user to wring their hands over. Basecamp originally presented 5 or 6 but now publicly show 3 options. We had about five variations, hoping to hit the majority of what we though our customer base might need, but settled back to two basic packages in the end.

(b) Each app market is different in subtle ways generally understood by the entrepreneur, however rather than having an unlimited use quota, give a usable quantity as part of a package and then additional at a micro-cost. (easily justifiable, but gives you a revenue ratchet. Same with resources)

]]> By: darrylxxx http://www.bytesurgery.com/blog/2008/06/05/learning-how-to-price-your-web-app/#comment-21884 darrylxxx Mon, 23 Jun 2008 16:37:22 +0000 http://www.bytesurgery.com/blog/?p=382#comment-21884 Robin, Good read. I've been on the same journey and can recommend you read these: http://www.joelonsoftware.com/articles/CamelsandRubberDuckies.html http://avc.blogs.com/a_vc/2008/01/the-long-tail-o.html http://redeye.firstround.com/2007/03/the_first_penny.html Love the tour on the new site too! Rgds Darryl Collins http://www.banjax.com Robin,

Good read. I’ve been on the same journey and can recommend you read these:

http://www.joelonsoftware.com/articles/CamelsandRubberDuckies.html
http://avc.blogs.com/a_vc/2008/01/the-long-tail-o.html
http://redeye.firstround.com/2007/03/the_first_penny.html

Love the tour on the new site too!

Rgds
Darryl Collins
http://www.banjax.com

]]> By: Grant Watson’s links for 2008-06-16 http://www.bytesurgery.com/blog/2008/06/05/learning-how-to-price-your-web-app/#comment-21874 Grant Watson’s links for 2008-06-16 Mon, 16 Jun 2008 22:38:32 +0000 http://www.bytesurgery.com/blog/?p=382#comment-21874 [...] Robin Blandford [ ByteSurgery.com - Digital Media Engineering ] » Blog Archive » Learning How To P... Unlike many traditional models, it seems web app prices are not pay as much as you eat. You do not get charged per item, rather you buy a bundle that has limits. Prices have to be made very simple to up-sell the user as their requirements increase (tags: web2.0 business-models) [...] [...] Robin Blandford [ ByteSurgery.com - Digital Media Engineering ] » Blog Archive » Learning How To P… Unlike many traditional models, it seems web app prices are not pay as much as you eat. You do not get charged per item, rather you buy a bundle that has limits. Prices have to be made very simple to up-sell the user as their requirements increase (tags: web2.0 business-models) [...]

]]> By: Paul Sweeney http://www.bytesurgery.com/blog/2008/06/05/learning-how-to-price-your-web-app/#comment-21860 Paul Sweeney Mon, 09 Jun 2008 07:22:35 +0000 http://www.bytesurgery.com/blog/?p=382#comment-21860 Happy to share some learning here. (1) The pricing will ultimately only come clear in actual customer conversations. Some customers may want to buy in "gigs" some will want monthly some will want to per year etc. What we at VoiceSage found, was that once we found the right customer-type, the pricing gained uniformity in structure; (2) Its not about "price" for the business customer, its ability to demonstrate value. If you are "in the pricing conversation", they don't see the value. Lets face it, if you walked away from that conversation, would they follow you out the door? (3) In enterprise, I've heard this more than once: "in Pricing, ask for one third of what you can prove you made or saved for the customer". Doesn't seem a bad metric to me anyway. Happy to share some learning here.

(1) The pricing will ultimately only come clear in actual customer conversations. Some customers may want to buy in “gigs” some will want monthly some will want to per year etc. What we at VoiceSage found, was that once we found the right customer-type, the pricing gained uniformity in structure;

(2) Its not about “price” for the business customer, its ability to demonstrate value. If you are “in the pricing conversation”, they don’t see the value. Lets face it, if you walked away from that conversation, would they follow you out the door?

(3) In enterprise, I’ve heard this more than once: “in Pricing, ask for one third of what you can prove you made or saved for the customer”. Doesn’t seem a bad metric to me anyway.

]]>