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(I consult on topics like this for startups)

A lot of the comments are focused on figuring out price points, i.e. how much.

You should also spend time figuring out the right pricing metric, to make sure that as your customer gets more value out of your product, you continue to get a fair share of that value.

By pricing metric I mean things like per user, per server, per API call, etc.

Take for example a SaaS app that helps you create project proposals.

If you charge per user at $10/month, and one user generates 1,000 proposal a month, effectively that user is paying 1 cent per proposal.

In this case the proxy for value for your product is number of proposals.

The user is getting a lot of value from your product, but you're getting a flat share of that value. Regardless of how many proposals the user create, you still only get $10.

So in this example, it makes more sense for you to charge by proposal first and foremost.

Gets more complex as you think about secondary metrics but that's the principle.




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