Add-on pricing strategy

[Andrew Apell]

Hello fellow developers,
What do you think about charging each individual account for your add-on vs charging enterprise accounts and individual accounts separately?
What has you experience been?

[Faustino Rodriguez]

I believe a combination of both might be the best approach

- offer a single account subscription for any type of Google account

- and offer a domain-wide subscription for any user in the G Suite domain

The domain-wide price (how many time the single user price) would depend upon 

- the value the add-provides

- the potential use for the many domain users

- and the cost the add-on has depending on the number of users

I'd love to learn how others are approaching this question

Fausto

[Alan Wells]

The biggest issue will probably be what people are willing to pay for.  And that is dependent upon many factors, including how you market the add-on, and the tactics used to get people to pay.  There are add-ons that might have a 5 star rating, but people wouldn't be willing to pay 2 cents for it.  It depends on who your users are.  Some users won't pay anything, some users will pay a lot.  If you want to maximize revenue, then you need to find the price point at which you get the most paying users.  No one can tell you what that is.  You may need to try different prices.  Ultimately the customers will decide what they are willing to pay you.

Do you have competition?  Does the competition charge anything?  Are you getting fewer users than expected?  Do you ask for feedback?

On Tuesday, September 17, 2019 at 5:26:51 AM UTC-4, Andrew Apell wrote:

[Andrew Apell]

My closest competition charges over 30 USD per year regardless of whether it's a domain installation or individual installation.

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[Alan Wells]

You could charge 32, and then they'd charge 31, and then you'd charge 30, and then they'd charge 29, etc. until you both get to zero.  That's better for the consumer.  But then you'd both go out of business, and then stop maintaining the add-on, and then the consumer would have 2 un-maintained add-ons, that might stop working.  It's a brutal existence.  Yah, I guess it's better to charge the same thing they are charging.

On Tuesday, September 17, 2019 at 10:44:48 AM UTC-4, Andrew Apell wrote:

My closest competition charges 33 USD per year regardless of whether it's a domain installation or individual installation. I think I will do the same.

[Andrew Apell]

But I have 2 issues to consider:

1. They already have over 300,000 "users"

2. They appear to be charging per user.

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[Alan Wells]

Do you have a way to test from a GSuite account with multiple users?  I have a GSuite account, but it's only me.  No other users.

[Andrew Apell]

I actually don't... that would be a good feature to have.

I think I have seen a post about it here somewhere but if anyone can save me the trouble of looking for it, that would definitely be preferable to me..