Whats the sweet spot pricing for a subscription product

SagaDashboard
2 replies
Assuming the product is lightweight and costs you about $0.40 per user p/m to run.
1.9x
2.9x
3.9x
4.9x
> 5.00

Replies

Reverse Engineer
Subscriptions aren't like e-commerce where you can multiply cost by a number and call it a day. Your best pricing structure will depend on the target market and perceived value. If your product saves the user 20 hours a month, you can charge more than if it only saved them $20 a month. šŸ’­ How much is your target willing to pay for products with similar features? šŸ’­ How much time/money does your product save the user? šŸ’­ What's the lowest profit to keep you motivated with new updates to keep retention?
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@hoffertr as Randolph points out, price is rarely correlated with cost. It's only when the market pressure of multiple suppliers competing for the same sale comes into effect that cost becomes the main component of the price calculation. And that's a market position you probably don't want to take.
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