Should we price a new feature with per-user fees or usage-based pricing tiers?
#1
We’re about to launch a new software feature and I’m stuck on how to charge for it. My gut says a simple per-user monthly fee, but I keep wondering if a usage-based model would better capture its value, especially for our larger clients. I’m just not sure how to structure the tiers without making it feel unpredictable for them.
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#2
I went with a simple per user monthly plan because it is easy to quote and forecast. For bigger clients I heard that governance and license tiers matter. We ran a three month pilot with two large customers and tried a basic usage cap on top of the per user price. It did not feel great because the invoices moved a lot from month to month.
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#3
I tried a usage based model last quarter and the invoices varied a lot. The average spend drifted between two thousand and five thousand each month depending on how active teams were. It felt risky but some large clients liked the transparency.
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#4
I keep thinking the problem could be something else like onboarding or integration friction. Even with a stable price the renewal sometimes stalls if teams struggle to adopt the feature. It is hard to know if the model is the real blocker.
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#5
Would you rather give customers predictability or try to capture peak value and does that distinction even map to how your users work?
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