Setting the ideal pricing for my web application

[fellipe]

Hi,
So, as promised in my other thread (https://www.thefastlaneforum.com/in...-autority-ask-his-endorsement-my-web-app.html) I'm asking for your opinions on my pricing plans.

To understand what's the purpose of my web application, please take a look at the landing screen mockup: View image: landingpage2

Right now I have two competitors.

Competitor A asks $15 month for unlimited albums
Competitor B asks $12 month for unlimited albums

I really think I'm creating a better solution. My solution is much simpler to use and more elegant. I think I did a great job regarding user experience, since I've been studying this particular subject for a long time.

The problem is, although I have a great application, because of my two competitors asking 'too little', I'm having problem while trying to find the ideal pricing point for my website.

I've made a quick survey with 200 photographers and my finding are:

50% create less than 5 albums per month
35% create between 5 to 10
15% create more than 10 albums/month

So based on that I decided to create 3 different plans:

Basic: Create up to 5 albums per month (ask a bit less than my competitors)
Premium: Create up to 10 albums per month (ask a bit more than my competitors)
Pro: Create unlimited albums per month (ask much more than my competitors)

Here's what I've came up:
http://postimage.org/image/lq8ltunad/

Based on the competition and considering my application will provide more value to the end user, what insights would you offer me?

Thank you.
Fellipe

 

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[MJ DeMarco]

I think the pricing you have is a good start. It's always easier to get cheaper, than to get more expensive. Make sure to convey the additional value you offer over the comps per each.

BTW, you might want to tweak your landing page so photogs now that what you do is FOR THEM, and IMMEDIATELY. It took me about 45 seconds to look over your page before I understood what you did.

 

[FastNAwesome]

I like the pricing and how you have come up with it.

Just an idea:

Would it be worth split testing this offer you have, and another one where in addition you offer a FREE plan,
with 1 album a month (enough for them to try it and love it, and hopefully not enough for them to stay on free plan)

 

[mohawkdcg]

Make it clear at the top that this is a service for photographers. Also, be more specific about what the service is: I was trying to figure out who was approving what albums. I had to scroll down to realize that photographers were the websites client and then go back up to to top to realize that it is the clients of the photographers who are approving the albums. So mentally I completed the sentence "Get your Albums Approved Online" to be "Photographers get the albums you created approved by your clients online".

Even better, you should realize that "Get your Albums Approved Online" is a feature. Dig deeper to find the benefit, which is probably something like: "Photographer get paid faster by making it easy for your clients to approve your work online".

 

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[fellipe]

Thank you for your time for helping my business, I really appreciate that.

 

[Paul Gallo]

Just an idea:

Would it be worth split testing this offer you have, and another one where in addition you offer a FREE plan,
with 1 album a month (enough for them to try it and love it, and hopefully not enough for them to stay on free plan)

I second the split testing , that way you always have something to compare your results to,( A vs B) and over time you can constantly improve your traffic, conversion and margin

 

[faromic]

What MJ said about the landing page is true. It seems to be one of the most important things, otherwise they might bounce. I watched an interview about copywriting on Mixergy a while back and it had some good tips about copywriting specific to landing pages. It can include the link if anyone wants but you have to have the premium membership. Anyways, you definitely want the call to action and benefits to be clear right away.

 

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[Esquire]

I second what M.J. and FastNAwesome said.

I think you did a smart thing by not engaging your competition is a race to the bottom. Higher price points imply higher value ... which you claim to deliver ... and gives you ample wiggle room to split test promotions and discounts without sacrificing margin.

GREAT JOB!

 

[Jake]

I'd like to take a look but I can't at the moment.

"This Websense category is filtered: Nudity."