![]() Total Usage – Number of transactions transacted, number of reports viewed, articles read, or even storage space used.Per User – Named users are identified and charged for each login, or you can have concurrent users who can share one login at one price.You need to adapt your product pricing accordingly: Remember, one size does not fit all in the recurring revenue industry. We can expand on the product pricing types above to determine which method works best for your customers. The more you use in space, the higher the rate charged Usage – For backups of your information, just like a company like Carbonite would.Flat Fee – For Dedicated Server pricing and Cloud Server pricing.Exercise apps such as Peloton can charge per session or for unlimited access.Īt Liquid Web, we charge our customers in two main ways: ![]() Online streaming services such, as Disney+ or Netflix, charge per user. Start by asking yourself if your product will be sold: Determination of Product Pricingīefore you can set a price, plan out how you will sell your product first. Struggling to Scale Your Business? Find out Why Outsourcing Managed Web Services is Better for Your Business. With that in mind, if you are a start-up, transitioning to a subscription business model or recurring revenue model, or adding a new line to your current offerings, there are two main topics you must master for effective product pricing: day 50 without getting a Master’s Degree in the Economics of Pricing. This article aims to equip you with an understanding of how to price your products effectively from the beginning vs. If you price your products incorrectly, you will create problems that you will never overcome. To quote Richie Norton, author of the book The Power of Starting Something Stupid:Īt the end of the day, if you have a great product and service paired with the wrong pricing strategy/business model, you do not have a business”. Whether you are selling online streaming services, newspapers, magazines, exercise apps, or web hosting, getting your product pricing strategy in place on day one will help retain a positive revenue stream.
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