Our new pricing explained, and why pricing is hard
Jan 15, 2024•3 min read
We began the new year with two goals: to increase profitability and attract more paid users. One way to accomplish this was to overhaul our pricing.
However, this was a challenging task due to the complexity of pricing.
We have introduced two new plans and renamed our current plan as follows:
- Starter: 29e (previously known as the Pro plan)
- Growth: 79e
- Pro: 149e
We went through multiple iterations before selecting them.
Per Seat pricing sucks 🗑️
When I initially shared the draft of our new pricing, we had a per seat limitation. It was shamelessly copied from our competitors, who all use per seat pricing, and many other SaaS businesses.
I agreed with them, as per seat pricing doesn't add any value in our case.
I remembered that I was frustrated when I was using a product with per seat pricing. And what I did was to set up a team account with a catch-all email and share the credentials with the team.
We dropped the per seat pricing.
Don’t be cheap 🤑
By the end of December, I have been asked for a €9 plan. Initially, when we revised our pricing plan, we added this as our first option.
We believed that offering a plan at such a low price would attract more customers, as €9 is affordable for most companies and it would show their support for us.
After couple of days, we realized that it was a mistake. We should not be cheap. We are a fully bootstrapped, we can't compete on cheaper pricing, but we can compete with a better product, though.
If we have a cheap plan, our customers will be biased towards using our product. We won't feel it's worth the same thing as our competitor, even if our product offers a better alternative to them.
Avoiding underpricing was the most challenging for us.
How we priced our plans 📈
We have wanted to only to price our product based on the value it provides to our users.
Thus we are only charging for:
- The number of monitors
- The number of alerts
Why only these two metrics?
- For the monitors, we have a higher request frequency and therefore more data to process on Tinybird. We also have a longer data retention period.
- For the alerts we are paying our SMS provider.
We also wanted to keep it simple and avoid a pay-as-you-go plan. We don't want some of our users to end up with a huge bill at the end of the month. 💸
Why did we keep the free plan? 🤔
Some bootstrappers (like marc) will tell you to remove the free plan. It's a waste of time.
We wanted to keep it within reasonable limitations. The number of monitors should be enough for a small side project. For us, it's a way to attract more users to use our product.
And if more users are using our hosted status page, we will have more SEO backlinks, and it's a win for us.
It's hard to price your product. But our pricing is not static. If it's not working, we will change it.
Want to support us? Sign-up and pick the plan that rights for you.