Startup Funding Espresso -- Per Seat vs per Use Pricing
Per Seat vs per Use Pricing Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Many SaaS businesses use either per-seat or per-use pricing. Per seat pricing offers a fixed price for the customer making it easy to budget. It also provides a consistent revenue stream for the provider especially when applied with annual contracts. Per-use pricing works best for the provider whose cost scales with the product usage. Usage pricing is often used in a \u2018land and expand\u2019 strategy in which customers can start with a low price but limited use. As the customer uses more of the product, the price increases.\xa0 It also works well when customers don\u2019t use the product consistently. This type of customer will consider the product to be too expensive if paying per seat. Combining the per-seat and per usage price could create a new pricing model. In this case, the provider could charge a base price for the platform and then charge a variable amount based on the usage. Consider combining pricing strategies into new revenue models for your business. \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .