Best way to price subscription services?

Hello Digital Pointers,

I am new here so please bear with my lack of knowledge of these forums! If mods believe this post is not relevant, feel free to move it whenever it needs to be.

I am building a website that provides online services. There are several tiers that provide 5GB, 50GB and 100GB services. That does not include base memory (e.g user's basic data and chat transcripts etc.).

This doesn't also account for the processing power an individual user may spend.

So I am stuck here because there are lots of variables to consider and I am charging a fixed monthly amount. Some users may store more data and some may store less.

Is there some kind of technique that I can implement to determine the best pricing for my services and cover my costs at the same time?

Kind regards,

Rare Pepe

 

The pricing structure for subscription based services can be defined on the basis of user level, usage, size of business and the client performance. For your website, it would be good idea to price on the basis of users and resource usage. Here are the few tips.

1. Create pricing plan for different users group: individual, small business, medium business and enterprise level users.
2. Create pricing plan on the basis of resource consumption or resource requirement: space requirement, no of concurrent users etc. (You can call it Pay as You Go plan)
3. Make sure to have a freemium offer on your website.

Hope that helps,

 

I would suggest you follow the Amazon pricing structure.
When you get the volume, your profit will be huge if compare with traditional pricing structure.

 

following this...interested...

 

Hi: Have you looked at Google's pricing? Amazon? Dropbox?

Perhaps you have found a solution that you would like to share???

Dan

 

I can't say I fully understand what the services you offer are.

You have to remember that if it's not "skill-based" services like web design, SEO and stuff like that, you don't get to choose the price. Your competitors do.

Here's what I would do if I were you;
- See what features my competitors are offering and at what price
- Offer a few more features than them
- Price my service a bit lower to stay competitive

Remember that by charging too much cheaper than your competitors isn't a good thing either because your services could be viewed as inferior.