Fixed or Feature + Usage-based Pricing Model?
Hi,
I'm the founder of PixlSpace.com which is a file storage solution tailored or suppliers and distributors. You can look at PixlSpace.com as a combination for a standard file storage solution (Dropbox, OneDrive, Google Drive etc.) and WeTransfer. The users can find all their files by searching and then they can preview, download and share the selected files with ease. The service also allows the users to invite their customers to PixlSpace.com so they can find the files they need whenever they need them.
When I launched PixlSpace.com I decided to go with a fixed pricing model with three tiers that include different features and storage space but I have begun to rethink this and I would like to hear your thoughts on it.
Instead of having a fixed price as described above, I have been thinking of having a pricing model where the customer pays a fixed price for different features and then for the actual storage they use as a usage-based pricing model. So, instead of only having a fixed price I would switch to a combination of fixed and usage-based pricing.
What do you guys think is the way to go and why?
Do you have any experience with different pricing strategies that you would like to share please do so!
Hi Carl,
the question is why you have begun to start thinking of different pricing model?
Is it because your current fixed price model doesn't work? Or it somehow works but you have the nagging feeling that the grass is greener on the other side? (Which is fine, every founder experiences that sometimes.)
It is OK to experiment with pricing until you get it right. It is also important to know that price is only one part of the equation. The main think is to have a product / service that customers are willing to pay for. And they'll pay for it only if it solves their problem.
My suggestion is to think about price model along with the advantages your solution provides to your customers.
As I am not the target group of your service I can't comment on usefulness of your offering. Hence I don't know if "combination of Dropbox and WeTransfer" is the main advantage for the customers. But I guess you've done some prior research.
Would be great if you could share results of your pricing experiments!
The reason why I'm thinking of switching the pricing model is due to the feedback I have received from customers and during demo meetings.
But the real reason may be that I didn't provide them with enough value as you suggests. I'll work on fine-tuning how I communicate the service outwards so new customers more easily understand the value and the problem that I'm solving for them.
Thanks for your comment!