$25/month is kind of an ambitious price point for small teams or individuals. That's like implying that your service would be more valuable than Basecamp or Github.
Surely it depends on the problem being solved though? If I was making a new project management or source code hosting service I would have to think twice about charging the same or more than my competitors alternatively I need to compete on something other than price. Also if a you need a solution to problem X how can the price point be compared to an established company solving problem Y?
>if a you need a solution to problem X how can the price point be compared to an established company solving problem Y?
If problem X and problem Y both cost $25/month to solve, they should be roughly equal pain-wise. By starting at price point of $25/month, and working your way backwards to find problems, you should expect to be tackling Github- or Basecamp-sized problems.
I think that's non-sense. Just because X and Y cost the same to solve doesn't mean they are equal pain-wise. It doesn't take into account any of relevant factors like market size. I've seen a lot of services that are trivial in comparison charge a lot more because it's a much smaller market and/or the value of a very specific tool is worth far more for people in that niche.
X and Y can cost the same amount and solve different amounts of pain and both be priced accurately.
How?
Amount of Pain X Solves < Amount of Pain Y Solves
X solves a problem for a small market where the consumers are still find it worth $25 to solve the problem and have less options.
Y solves a massive problem that a lot of people have (big market). Prices have been driven to $25 by many competitors.
Different amounts of pain, different amounts of complexity, same price. Y's price has been driven down to 25 by competitive factors. X's price is higher because a lack of competitors. All this requires is that one is under-priced relative to value delivered but not to the market's competitive forces. Therefore neither is under priced given the reality of both sides of the market.
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$25/month is kind of an ambitious price point for small teams or individuals. That's like implying that your service would be more valuable than Basecamp or Github.
Surely it depends on the problem being solved though? If I was making a new project management or source code hosting service I would have to think twice about charging the same or more than my competitors alternatively I need to compete on something other than price. Also if a you need a solution to problem X how can the price point be compared to an established company solving problem Y?
I'm curious, are you a developer?
>if a you need a solution to problem X how can the price point be compared to an established company solving problem Y?
If problem X and problem Y both cost $25/month to solve, they should be roughly equal pain-wise. By starting at price point of $25/month, and working your way backwards to find problems, you should expect to be tackling Github- or Basecamp-sized problems.
>I'm curious, are you a developer?
Yes, I'm a developer/consultant.
I think that's non-sense. Just because X and Y cost the same to solve doesn't mean they are equal pain-wise. It doesn't take into account any of relevant factors like market size. I've seen a lot of services that are trivial in comparison charge a lot more because it's a much smaller market and/or the value of a very specific tool is worth far more for people in that niche.
If X and Y cost the same but do not solve the same amount of pain, one of them is underpriced.
X and Y can cost the same amount and solve different amounts of pain and both be priced accurately.
How?
Amount of Pain X Solves < Amount of Pain Y Solves
X solves a problem for a small market where the consumers are still find it worth $25 to solve the problem and have less options.
Y solves a massive problem that a lot of people have (big market). Prices have been driven to $25 by many competitors.
Different amounts of pain, different amounts of complexity, same price. Y's price has been driven down to 25 by competitive factors. X's price is higher because a lack of competitors. All this requires is that one is under-priced relative to value delivered but not to the market's competitive forces. Therefore neither is under priced given the reality of both sides of the market.
By the same logic, any price greater than zero would be implying that your service is infinitely more valuable than Google Search?
No, Google Search is not a SAAS. That would be comparing two different things.
google search is saas, the service is searching, the software is Google Search
One of the biggest mistakes startups regularly make is to not charge enough