Subscription or one-time purchase?
Artyom Sviridov
11 replies
Sure, it depends on the product, but which one would you prefer?
Replies
Macklin Buckler@mackbuck
From a consumer standpoint, I prefer a subscription. Somehow, the idea of continuing to pay over a period of time increases my perceived value of a product.
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I totally get what you mean, it's a real conundrum, isn't it? personally, I think it really depends on the specific product and your own situation..
For some apps or services I'm totally down with subscriptions because you get constant updates and it's not as heavy on the wallet upfront, but then again, there are some things where I just want to pay once and be done with it, you know, no more monthly bills :)
So, I guess I'm kinda in the middle, leaning a bit toward subscriptions for the convenience, but I totally respect the one-time purchase camp haha!
What do you prefer?:)
Depends..... If it's something I'm not sure about I'd go for sub but if I know it's something I'm gonna use it for a long time and don't want the hassle of payment every month, I'd go for one time purchase.
I HATE subscriptions, especially to software that shouldn't need updating. AND YET. I just created the alpha version of a writing-as-a-service product... though in my defense, that is something that, by definition, is tough to do in a one-and-done fashion. Welcome feedback on it (www.enterink.com).
Depends on the market/target customer as well. A recurring $50 charge might be easier for a smaller company to afford than a one time $480 charge, especially if there's no free trial involved.
It's tough to say which I personally prefer since, as you said, it depends on the product.
If the product is constantly being improved and supported, then a monthly fee/yearly fee feels more appropriate.
If it's a desktop platform which is rarely updated or charges yearly for new version (like old Adobe products), then a one-time fee seems safe.
A yearly SaaS fee with a discount to pay up front is cool too - but you have to be sure you want the product of course. I've only done this with a corporate budget, not as a startup though :)
On the other hand, a one-time fee for a SaaS can be a risky investment. They must have some cost involved and after that cash runs out, how are they going to pay to keep the systems running?
Also, a lower monthly fee is more accessible to a broader audience than a 1-time yearly or lifetime payment.
Using Adobe as an example, Photoshop used to be $650-$1000 and roughly $270 for an upgrade license. I was probably the most pirated software around at that price.
Now they can charge ~$240/year at about $20/month to a much wider audience that can afford it and won't bother (or likely be able to) steal it.
@anthony_latona I think pricing perspective has changed through time. Now when you know your audience are going to pay, you keep prices higher. Think of it as a premium brands' product. But when prices are kept low, it is meant to cover a wider audience. A classic example I could think of would be iOS and android phones.
Subscription is better, incase you don't like the product you can cancel.
Subscription, as a maker of a SaaS product. Even as a customer, I feel subscription is the best way to price SaaS as I know how SaaS works - after all, it's not a commodity that will be sold in one shot.
I pay annually. I hate subscriptions and watching all the charges hit my CC monthly!