![]() ![]() Using that kind of pricing strategy increases attrition in our experience, as well as the resources needed to deal with the complexity of the sales cycle. Carbonite Safe is an easy-to-use online backup service that offers unlimited storage, but a subscription covers only one computer and the service lacks features like mobile backup, file. In our experience, customers prefer to see a single quote that covers the entire solution and can be very resistant to being nickel and dimed for add-ons, support, or even restoring data. Whether you go with a per GB or tiered model, decide on a price that includes everything you want to offer in your service. From AvePoint, Cloud Backup for Microsoft Office 365 is a SaaS backup, that includes unlimited, automated backups, and secure storage in AvePoints Azure. Quote one price that includes everything (don’t nickel and dime customers) This means you can market it as 500GB but see actual margins based on only 250GB of cost as an average.Ĥ. $80/month for 500GB), but will likely be somewhere in the middle of the tier statistically. Customers see the max they can backup up at each level (e.g.Storage is easy to acquire for minimal cost, so the higher tiers scale down the cost quickly.Software/support costs remain high no matter the size of the backup, especially for a managed service, so the lower tiers are more expensive relative to the data.Here are some price points to consider, with the caveat that each provider is dealing with unique regional markets, client budgets, and competitive landscapes.Īssumptions when using this kind of tiered pricing model: The key is to choose a per GB cost that makes sense. This is a great way to price your managed backup service, as it’s easy to track either selected data or compressed storage, it’s very fair, and it scales as your client’s data grows. As you’ll see below, you can craft an aggressive per GB or tiered pricing model that is fair to both you and your end-users. It may sound more attractive to customers upfront, and for good reason, but in the long run you will want the flexibility to charge more if a client’s backups grow exponentially. COVERAGE: Plan starts on the date of purchase. Over time your storage, bandwidth, and support costs scale with the amount of data and number of machines your customer is backing up, so don’t sell yourself short by agreeing to a fixed fee plan. NO ADDITIONAL COST: You pay 0 for repairs parts, labor and shipping included. Using fixed pricing is the easiest way to lose money on a managed backup service, especially if you bundle it with “unlimited” storage. Never use a fixed fee plan (or unlimited storage) ![]()
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