Hi Michael,

We have a SaaS platform (http://buildAR.com) that enables people to quickly
create mobile AR. We've found that a significant proportion of our customer
base are from the education sector (global).  We currently support
individual pricing e.g. one user to an account.  Educators are really keen
to see us support a group-based model where an account can have a primary
user and multiple sub-users for a single monthly price.  Pricing sensitivity
we have found differs significantly by region, however a common trait is
that if it is over a certain amount the approval process for the spend
becomes an obstacle for them.  Many want to pay for a 12 month period
up-front rather than month-by-month too.

I think pricing will really depend on the region you are targeting.  One
thing we have learnt is that the teaching staff aren't comfortable paying
out of their own pocket - they do prefer their educational institution to
pay.  Best bet is to approach people in your target user group and ask them
up-front about what they would be willing to pay for access to Teacher Time
based on the value they attribute to the time they will save using your
platform.

Hope that helps...

Alex

-----Original Message-----
From: silicon-beach-australia@googlegroups.com
[mailto:silicon-beach-australia@googlegroups.com] On Behalf Of Michael
Imstepf
Sent: Thursday, 16 February 2012 2:58 PM
To: Silicon Beach Australia
Subject: [SiliconBeach] Pricing for SaaS

Hi all,

Yesterday we launched Teacher Time (http://app.teachertime.com.au), a
platform for teachers to save and share resources. A school asked us today
about our pricing, something we haven't finalised yet. We definitely want a
subscription model and charge a certain amount per teacher/license and per
month. We are not sure what prices are appropriate though and also we are
not familiar with the price sensitivity of principals (if the school pays)
and teachers.

How do entrepreneurs approach pricing for SaaS subscription models?

Thanks,
Michael & Team

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