Quote:
Originally Posted by TripleXPrint
I'm putting together pricing for my monthly subscribers. If it was something that you would sign up for, which pricing level would sound the best to you? I find that people are willing to pay more per month if the initial setup fee is lower. Which one would you select and which one sounds like a better deal?
1. $1000 setup fee and $50 a month recurring
2. $750 setup fee and $75 a month recurring
3. $500 setup fee and $99 a month recurring
4. $350 setup fee and $125 a month recurring
5. $100 setup fee and $175 a month recurring
I don't offer contracts so subscribers can cancel at any time. I can't assume everyone is going to stay subscribed, so should I get as much money up front? If I go with the lower setup costs, my yearly margin is much higher.
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Anybody who can count knows that option #1 is the cheapest way to go if they plan to stay with you for the long term. In addition its good for you because you get a high payment up front which I'm sure covers the typical setup costs and hand-holding you need to do with each customer.