Pricing strategy · Enterprise

How do you price early on and keep early B2B customers happy?

Helen Adeosun

August 23rd, 2014

My company has an online marketplace for nannies and caregivers to get great education, and there is a really great opportunity to price our classes in bundles for nanny agencies, our b2b customers. There are a few problems:
1) We don't have the breadth of classes and offerings as our best competitors even though our classes are much richer (videos, demonstrations, etc.)
2) The only pricing model that I am aware of for education is a per head or per seat licensing.

The name of the game for us is traction and we want agencies to adopt us as their go to resource, but need to cover our costs. Are there sources anyone would recommend on pricing smart for b2b traction, especially when the product isn't complete? How do you structure the offering?

ABHI DOBHAL Vice President Business Development at Factom

August 24th, 2014

Helen - You could offer a variable pricing model per class/video. Essentially, a "pay per consumption" model. Instapage, a landing page company did this very successfully at launch where they would charge per feature that their users would like activated. Once they got enough traction, they asked the users to either adopt a subscription model for bundles or continue using charge per feature (while raising prices on the latter model). 

Patrick McGuinness VP of Engineering, CTO, Software dev mgr, & Entrepreneur/Founder

August 24th, 2014

(The other pol of Abhi's suggestion ...)
One bundled pricing model that has been mentioned to me that works well in education/training is per enrollment / per employee. In other words, if this is something every enrolled/employed person should take, charge by that, not by how many actually take it. Then you charge a lower cost per headcount ('make it up in volume'), accounting for the expected numbers who dont take it. This makes it easy for the agency, because it becomes one price for 'all you can eat', and you can price lower now, and raise prices as you add value/classes.

You can always undercut 'full competition' either in market segment, or (worstcase) prices. If they have more, but charge more, find those companies who dont need the whole product.

Also, my startup is providing online learning technology platform support and hosting, so I'd be interested in discussing with you what technology you are using and if what you are doing might utilize our capabilities.

Kara Carpenter

August 25th, 2014

We have a learning analytics platform for schools, a b2b sector that is notoriously difficult to penetrate, so we've created an early-adopter program. Schools get a highly-discounted rate, and in exchange they agree to provide feedback to help us improve the product and make the partnership public, so we can promote our traction. This is a win-win for us because their feedback often makes for great marketing copy. They also have the choice to lock-in this early-adopter rate for multiple years if they want to.

Helen Adeosun

August 25th, 2014

Kara, Abhi, and Patrick thank you so much this is excellent and so helpful!

Helen Adeosun

August 24th, 2014

Abhi thanks for this information, I think focusing right now on creating value for each one of class makes a whole lot of sense! Also needed a landing page site so double thanks!