We're trying to figure out the pricing for a service we've been asked to provide (a couple times, in passing, actually in reference to something we've pitched that hasn't hit the mark "well that's great, but what we really are struggling with is xxxx").
One of our advisors is a director in a larger (much larger) company in the same industry and he's shared with us the amount they paid and are paying in initial license and maintenance for the defacto standard software (which is terrible) ($xxx,xxxx/year).
Is there a formula or some way to determine how to take that pricing, for a self hosted enterprise product and come to a reasonable SaaS pricing?
So far, we've sliced it two ways:
Or should we break the industry model of pricing on the unit and go to a seat model (i.e. by the user, potentially more based on the user class as they would have different functionality)? The concern here is that a small (people wise) client with a large number of units could sign up and potentially overuse the system (comparatively).