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Comment by quintes | Hacker News Reader

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quintes

I can think of these questions

1. Who are competitors in this space and what do they charge for business or enterprise?

2. Why do these banks pick your solution over others?

3. What is a reasonable price point including your own costs that make this desirable for them and feasible for you?

4. Pricing model, will you bill like a SaaS or a yearly subscription? What about users leaving, adds and changes?

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1. Not many competitors, but each competitor offers about a $500/mo plan that allows ~10 users. 2. We have greater accuracy and detail in our analysis. This has been proven with sample data and they agree that this is true. 3. $500/mo seems too much on the low-end for this. I'm not sure what "high" would be for a bank.. $5k, $10k? 4. I would like to bill this as an annual contract with monthly, quarterly, or annual payments. Current SaaS users are billed monthly or annually. Since they'll be self-hosting this, they will be responsible for user management and access. I will not have access to their internal systems.

The root of the pricing problem is we charge based on usage. If they self-host, we won't be measuring that usage as the tool will run without network connectivity.

Price for competitive value, start where you think, but - tier it to bundle of users at least, so as more users are added any additional effort on your part has financial cover

- think about support, customer success, installation, upgrades and ensure your including that

- test the number with them. Negotiate.

Caveat - this is limited advice use at own risk etc etc

Also, what is the financial risk the software is reducing or eliminating? If it massively reduces risk, it could adjust the price higher. These banks wouldn't bat an eye at $100k/yr if it has the chance to reduce a million screw-up byba sufficient amount.

How many people at a bank can approve a $100k purchase order vs. a $1,000 purchase order?

They're talking about an app team. The manager can likely approve 100k

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