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8 tips on setting the right price for your tech service

startupsmagazine.co.uk

Understand your costs

There’s no need to go into this too much as for any business owner, this is 101 - but it is always the foundation of getting your pricing strategy right. Ensure you understand how much your product has cost to develop, how much it will cost to deliver and how that cost will scale...

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Understand the market

Now, just because you're in the same market as your competition, it doesn't mean you have to copy their pricing strategy, nor should you look at competing on price. However, you should leverage the work that they've done to understand their buyers, and the psychology behind it.

Look at h...

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Perceived Value

So many technology companies go to market competing on price rather than value.

You definitely don’t have to be the cheapest, however, you also don't need to be the most expensive.

This largely comes down the phrase "If it's that cheap, it must be rubbish" - I've seen it time and ti...

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I got a call from a large global business that liked the product, and wanted an unlimited license for their 10,000 employees and £500k/mo wasn't the budget they had in mind! Nor should it have been!

Our pricing model needed to adapt to allow businesses of different sizes to pay more, but sc...

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The Existing Budget

Think of this as putting yourself in the shoes of the company exec pitching their budget - what saving or benefit will they need to demonstrate to win the approval of the CFO? Importantly, which exec will be the one to best position your product to get the green light on budget?

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If you're about to launch a SaaS platform, you can't really go wrong by analysing how some of the most successful businesses have approached their pricing matrix. I know it's cliché, but they will have spent a lot of time and money in understanding the customer, their psy...

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Test and Adapt

After saying all of this, you don't have to, and probably won't get it right first time. When you first go to market, irrespective of how well prepped you are, how well understood the market is, the chances are your pricing model will need to adapt as you grow and the market changes. The ...

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When you first take your product to market, beyond the price, clients also want to see proof points and case studies. If they're the first customer, this will always make them nervous, particularly if there's a lot of money on the line. This is where the old adage of "No-one ever...

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