Hi Everyone, I am new to this platform and read the questions and answers. I was really pleased to see the everyone discussing and helping each other out.
I need some guidance related to my business idea. I am interested in building an email platform which can help users reach their audience through Email and Newsletters etc. There are many Email platforms which are in the market for years and I wont be able to compete with them in the start(that I know).
The features of the Email platform that I am building is very much similar to the ones before. What makes my platform different then? You might have this question in mind. My primary focus is on the pricing. I am focusing on building a platform which can offer much reasonable prices & packages as compared to competitors. The idea is to offer a reliable platform with cheaper fee/prices.
Is it a good idea to focus on pricing and fee factor of the business? Will comparatively cheaper prices attract users to my platform?
Also, I am looking for a passionate and dedicated person to help me kickstart and run this business. Where can I find one?
Regards and Thank You.
I Agree with @Paul Garcia - if less price is the only USP , its not a good idea
No. I'm going to recommend you do not attempt this business idea at all. When your only way to compete is on price, you will lose. There is ALWAYS someone willing to take less money than you for the same thing. Maybe you could limp along for a while, but eventually someone will out-compete you on price if that's all you have to offer. ESPs are inexpensive compared to the burden they have of maintaining their systems. They're priced where they are because there are real costs involved, number one of them being support labor.
And for those who really don't want to pay a subscription service, there are still less costly options that require more effort from the user, but for the price of a couple months of service, they can own software and run it themselves with no service provider. Can you compete as a service that collects no more than $150 for the entire lifetime of your customers? If not, then someone has already beat you to the bottom of the pricing barrel.
When you say e-mail platform does it imply the one with the domain-name within a commercial firm's mailing system? Or for an individual? All the latter ones are free (if I understood this as the msn/GMailers etc)
Wouldn't you want to also differentiate on the product-e-mailers that send out content (one subscribes to tens and thousands of mailing lists depending on knowledge enhancement and interests: if it isn't catering to either & not engaging at all, well then people either unsubscribe or delete or just never open the mail or just skim through it if opened)
Yes, this is the place to find CoFounders, if you're looking for someone specifically in the case of an app then look for them on Bumble Business/Alice/any of your local VC/incubator's app on a store.
All the best for your venture. Product, price and everything in between can be evolved-a high priced is generally targeted to those who are willing to buy it, low for the masses-whatever it may be you're in good stead if you're profitable and within a competitive margin. Ultimately you need to earn to ensure you have a livelihood and then sell it off as an overnight success later.
having been in the tech space for ages, here is my input - pardon me if it does not do good to you when you read this - but it will help you in my view :
Emails are dirt cheap already (folks have already solved that problem)
Emails are loosing relevance - as long as they are statutory in nature - it is fine .
Transactions no longer need mails - they are real time.
Prices is the last thing you should go after. What is the kick ass thing you can do that others will find impossible to do , simply becuase they have become elephants in their business models and have built intertia - is what you have to answer ?
Good luck !
I would challenge other people opinion that price isn't good enough for differentiation.
It is and there are many examples confirming it.
The big question is how will you manage to build a product that is comparable with other platforms in terms of functionality and make it cheaper? As other people mentioned the margin in this business is quite thin.
Will your cheaper price be sustainable?
Because if not and you plan to lure people by cheaper price and then raise it, your price-sensitive customers will quickly move out.
Price as the only differentiating factor could certainly be a tough approach because you will get into price wars and, as a start up, you will open yourself up to that challenge from the very beginning which most if not all eventually face down the line. The notion that a better price is not a good enough value proposition though is bogus and too simple, just as stating lower price is a good enough value proposition is too simple. There are plenty of examples of companies that succeeded with equal quality (sadly sometimes/often even WORSE quality), and succeeded because of a lower price, TONS. If this were NOT the case China's economy would be in the tank! The challenge again though is that as a startup you run the risk of a company with very deep pockets simply pricing you out of business. You also limit your viability with investors because they will take this into consideration. I would challenge you to utilize some form of strategy to find that edge based not only on price but some form of function and content. Then it becomes a more interesting proposition. But to simply take the approach that there is always someone who can do it cheaper than you is just not the right approach for innovation. You need a solid business plan if you are going to pursue, and you need to engineer your business for success on multiple levels, price being only one but certainly a hugely important factor.
I suggest looking at founder pairing platforms like SUS through Y-Combinatior. It's a great way to meet other founders and potential matches for your company.
Don't compete on price, that's just a race to the bottom. Find your unique value and focus on that.