Pricing

12 years 11 months ago #83809 by nowwecanmakewar
Pricing was created by nowwecanmakewar
In order to get a jump start on this plugin pricing is going to be:

1. 25 Euros (must be a doc subscriber for the RC releases)

2. 100-180 Euros (After being doc subscriber you can purchase the RC version for this ammount or for 180 once its stable).

3. On top of all that no matter what your tacking on 10 Euro Cents per transaction.

4. Maintenance plan for $35 euros per year (not to mention trying to keep subscribed to the doc subscribe which is another $25 euros per year) making it 60 Euro per year.

That comes out to $250 USD plus commission. (for non doc subscribers.) and for every year add another $83.00 to that and then ON TOP OF THAT there will be transaction fees? You might as well be a credit card merchant. =)

Im all for generating money but I really think you need to pick one or the other. Either charge an set amount (which is already pretty damn expensive) or just offer it to doc subscribers and go with transaction fees, which can, and will, add up quickly. But doing both just makes you seem greedy (no offense).

Just to give an example.

I would have to pay $250 USD just to get the plugin, this after being a doc subscriber for $35 USD. I would also have to purchase the maintenance plan of course for $48 USD. So just to get the plugin I am looking at $333 (and this is for just being a 1 year doc subscriber).

Now on top of that your taking a proposed .14 cents for every transaction. Now my site is not large but I plan to do 50 transactions per month. Very small transactions, probably $3.00 per transaction. That comes out to $7 per month or another $84.00 per year. All for this ONE plugin. I know it gives us flexability, and ACL options, but I mean really? For this much.

$333 + $84.00, I am looking at $417 for the first year to get and use Subscription plugin and then $167 per year every year after the first (thats if the rates dont go up).

I dont know, I just think you guys should either pick a set price and offer it that way, but keep in mind majority of your users right now, can't afford this.

or (which I think would be more profitable in the long run) offer it to doc subscribers and go the transaction fee route. This would allow many more users to be able to afford it and allow much more transactions which equals much more income.

Just my thoughts.
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12 years 11 months ago #83819 by nant
Replied by nant on topic Re:Pricing
Thank you for your comments.

I assume you are re-posting what has been emailed in the newsletter .

Well you have misinterpreted some of the items.

To begin with first year maintenance is included in the price and also 100 credits.

So forgetting about the offers and sticking to the proposed list price scenario you would have to pay 180 euros to get the package that has 1 year maintenance included and 100 credits for transactions.

According to your business model, your site would be creating 50 transactions per month. So this means that for the first year you would have 50 x 12 = 600 transactions for which our proposed credit charges would mean 600 x .10 = 60 euros (thus 84 USD). You would be making 600 x 3 = 1800 USD. From this amount Paypal would most likely take 0.35 euros plus 3.5% of each transaction (plus 2.5% if you have to convert currencies)- this means ~ 210 + 6.30 = 216.30 USD to paypal. So your business model would be bringing you an operating income of 1800 USD per year with operational expenses 84 + 216.30 USD per year. This is a net operational profit 1499,7 USD. Of course you have CAPEX items to consider also.

Your proposed business model can of course be improved in many ways. Don't want to really open a discussion on this since I do not know what you would be selling at 3 USDs per pop.

Fact is that you are considering to start a business and as such you need to make these calculations. Most of our "users" as you claim are currently not doing e-commerce (well at least not with CB ). Each user must evaluate each individual business case. And granted, for some with small amount transaction payments the Paypal / CBPay transaction combo (even Paypal by itself actually) will make the case very marginal (you would be basically working for Paypal).

This is a choice and a decision everyone interested in doing business on the Internet should make. He/she needs to investigate alternatives, compare apples to apples and make a decision.

Regarding the credit transaction fee of 10 euro-cents, what the newsletter did not mention (thus you could not interpret or misinterpret) is that we would be offering bulk purchasing of credits at a highly discounted rate. Thus you could purchase all your yearly transaction credits up front and thus bring the transaction cost down by 40+%.

Fact is that this CBPay system is a commercial product to be used to generate income. Its a business tool.

Post edited by: nant, at: 2009/01/01 16:34
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12 years 11 months ago #83821 by nowwecanmakewar
Replied by nowwecanmakewar on topic Re:Pricing
Hey thanks for the thought out reply. Its greatly appreciated and I think will clear up things for not only me, but other users as well.

As for my site, I am charging a very low price because it acts as almost like what doc subscriber does here, except you get more site features (rather then downloads). Its cheap because my users does not have a lot of funds.

The discounted credits is a good idea and I will probably be going that route.

First I just got to figure out how to come up with the money to subscribe to the doc and then purchase cb subscribe by mid January (hopefully).

Once again, thanks for clearing some things up.
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12 years 11 months ago #83833 by nvcacademy
Replied by nvcacademy on topic Re:Pricing
Thanks for the explanation on how your "subscription" pricing will work. So my site which had over 7500 transactions in 2008 would pay .10 euros X 7500 or 750 euros, or about $1047 USD in fees paid to CB. Do I understand you correctly?
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12 years 11 months ago #83836 by Hennepdesk
Replied by Hennepdesk on topic Re:Pricing
More and more I regret my subscription.

Pay once I understand ....
but pay all the way ..... is worse then TAX!!
Tax you know how much to pay. This is a open cheque.

:sick:

Hennepdesk

Post edited by: Hennepdesk, at: 2009/01/01 20:03

Do you know how to grow?
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12 years 11 months ago #83845 by nant
Replied by nant on topic Re:Pricing
nvcacademy wrote:

Thanks for the explanation on how your "subscription" pricing will work. So my site which had over 7500 transactions in 2008 would pay .10 euros X 7500 or 750 euros, or about $1047 USD in fees paid to CB. Do I understand you correctly?


You understood correctly.

However, with this volume you might want to consider either purchasing bulk credits or perhaps a one time no transaction fee license.
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