The price of a free plan is for a business to offer a basic version of its core product in order to freely encourage people to use the product or service. The company will then commit to upsell users a paid premium version of the product or service that offers more value.
This pricing strategy is primarily used by software-as-a-service (SaaS) businesses that offer free plans with limited functionality. Allowing users to experience the software before committing to it.
The key to this pricing strategy is getting your freelancers to offer real value. That’s exactly what we’ve done here at Oberlo. Shop with us for free on the Drop shipping app. All you have to do is set your prices based on what your customers are willing to pay.
Hourly Pricing Strategy
Hourly pricing is as easy as it gets – all you need to do is set the hourly rate and charge for the hours you work. This pricing strategy is most commonly seen in businesses that work as freelancers, consultants, and other services.
Depending on the situation, some clients Dentist Email List may find it inefficient to pay rewards for hours of work. However, if you provide fast, repeatable service, this pricing model can entice clients that would rather avoid committing to larger project-based fees.
Item-Based Pricing Strategies
Item-based pricing is another strategy most often used by service-based businesses. The business will charge you a flat fee for pre-set projects instead of hours worked. This enables the client to understand the total cost of the project before the work begins. They can feel comfortable knowing that the work will be completed within their budget.
You may wish to combine this pricing strategy CNB Directory with another. For example, you can combine item-based pricing with cost-plus pricing. In this case, you will deplete your COG, add tokens, and charge per item.