There’s a lot of different approaches to pricing, but I suggest you keep it very simple and offer your customers fixed pricing.
1. Knowing the Price
Usage based pricing and similar models may seem attractive as the customer only pays for what they use, but that also means they don’t know exactly how much it’s going to cost over time. That uncertainty can stop you closing a sale.
2. Tiered Pricing
Fixed pricing doesn’t mean “all you can eat” for a customer, if you use tiers you can offer fixed pricing while charging for both usage and features. That’s going to allow you to maximize revenue.
3. Complexity
Pricing and payments tend to get complex quickly and it’s a very sensitive area for your customers. Fixed pricing helps you avoid lengthy engineering projects and numerous support requests.
Best of luck out there.
Sterling Road invests in idea stage and pre-seed B2B startups based in the US, Canada and UK.
