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WEB/DIGITAL How to price a web-based service?

yveskleinsky

Bronze Contributor
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Jul 26, 2007
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I'm trying to figure out how to price our service. Currently, we are thinking a flat fee of 5% per transaction. When we have asked around, people have responded positively to this number. HOwever, when we sit down to crunch numbers to see if we would be making money with a 5% fee, I'm not really sure. The reoccuring expenses that we know we will have will be:

- hosting which we are anticipating around $10/mo- but if we use a lot of bandwidth (planning on having <100 people on our site to start and then grow to >100,000+) this number would change-right?
- basic office expenses: (internet service, phone,utilities, rent): $2000 (won't need this right away)
- marketing/advertising: $500/year to start- and then that number would probably grow exponentially.
- there is the potential of us having employees if we got larger and used phone based customer service (unknown cost)

Our growth goals are to have 10 "clients" (which would gross us $150/wk) to start, with the intent to grow to 100k "clients" in several years.

Is there a way for us to figure out now how we should be pricing our service?
 

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yveskleinsky

yveskleinsky

Bronze Contributor
Speedway Pass
Jul 26, 2007
2,233
496
192
42
Based on the research that we have done, there is no direct competition. There are sites that are similar in the concept to what will be doing, but we are approaching our market slighly different, and we think this difference will, well, make all the difference! lol.

I think we are going to move forward with the 5% fee, just based on the response we've gotten so far. ...We will make a profit, but it will be small- which I guess is fine if the site is automated and the income will be mostly passive.
 

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