Hi all.
I have a question about "pricing" that is not related to SaaS, but rather to transforming Professional Services into ARR.
Two years ago we started an initial experiment: delivering live online training to IT professionals working in SMEs, using a membership-based approach.
Our value proposition:
- 8 courses scheduled throughout the year
- Two yearly membership options for the customer:
- 1) Membership for 1 participant: X€
- 2) Membership for up to 3 participants: 1.6 × X€
(It worked. And we were so happy that we (I) made the BIG mistake: not considering at all - for the second year - the physiological Churn Rate..)
For next year, we want to apply the same business model to end-user training (Office M365 Apps).
OUR PRODUCT: 8 courses scheduled in advance for all of 2026
OUR TARGET: small/micro companies (2 to 10 potential users)
OUR COST STRUCTURE: main costs are fixed (trainer, organization), so the number of people per company in each class is not an issue.
PRICING IDEA: offer customers a flat yearly price, divided into tiers that help maintain profitability.
We are considering pricing per Company, based on the total number of attendees per course. For example:
- 1–2 attendees
- 2–5 attendees
- 5–10 attendees
I would appreciate any suggestion on how to keep the pricing simple and fair for both sides
I have already interviewed about 5 customers who are interested in the concept, but I have not shared any pricing with them yet.
Do you thing that pricing per tier is the best options or do you think we have to think in a different way?
Thanks in advance to all.
Claudio