Pricing scheme for 2 types of companies


0

We have 2 potential types of companies we can work with:

Type A: major corporation; salesman / consultants that work for the head company
Type B: still a major corporation, but with branch offices that operate with their own spending budgets.

We're offering a tiered service (examples):
Tier 1: general access (maybe free)
Tier 2: feature 2 and 3 for $50k / year
Tier 3: (all of the above) + feature 4 and 5 for $100k / year

$50k and $100k / year may be ok for Type A company but Type B company may find that to be expensive

If I offer a 2ndary plan for Type B companies alone (and cut the prices), how do I ensure Type A won't signup as Type B and exploit the services?

I've been thinking about a-la-carte pricing:
base fee for both companies to use the service - lets call it $1k / year

then

feature 2: $5k for x uses / year
feature 3: $10k for x uses / year

and so on - I could even do a credit system and have them purchase credits that can be used for any of the features. This may ensure both companies aren't over paying or under paying and both use what they want to use. Need more of feature x? buy more credits.

Any other ideas though? This "problem" is staling my development of the backend and obviously, its an important problem...

Pricing

asked Jul 12 '12 at 22:06
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Lsiunsuex
103 points
  • Can you give some basic idea of what type of service you are offering? Also, have you look at what your potential competetitors are doing? – Ekoostik Martin 12 years ago

1 Answer


2

In your case, one option would be to keep the pricing confidential by not putting your pricing on your website: every deal is negotiated and customized.

The other option could be usage-based pricing. I would imagine that there's some usage difference between your two target markets and that companies A would consume more of your service than companies B, regardless of the feature set they initially choose.

So instead of differentiating your pricing just on features, you could introduce a secondary price differentiation, based on usage ; if that's at all possible for your service. And if it is, you could also consider offering just one version, the one with everything in it (the one everybody really wants anyway), and just differentiate your pricing based on usage.

Good luck.

answered Jul 13 '12 at 00:47
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Frenchie
4,166 points

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