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Comment by joegosse

Use good invoicing/billing software that allows you to discount on a per customer basis.

Start with two price points: one targeted at price sensitive customers, call it price A, and one targeted at price-insensitive customers (think enterprise), call it price C.

Set price A lower than you think - you can always add features and raise later to the point that people start to scream.

Set price C at much higher than you think - use volume discounting to offer discounting where needed, but this is your anchor point for conversations with big customers.

Consider whether price A is your acquisition channel or if you will have a "free" tier. If you don't have a free tier, you can feel fine with a lower than optimal price for tier A, as this is your conversion channel to price C.

Eventually you'll want a tier between A & C (call it B) to anchor pricing and encourage people to choose A or C. Refer to research on movie popcorn prices.

parent joegosse 9 years ago

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