Ask HN: Strategies for not showing pricing in the early stage

2 points by custominstall 4 years ago | 5 comments

Hi,

We are a for-purpose startup building a marketplace to help people find local physical activity groups, clubs and trainers that match their needs. The idea is to build a resource for people, councils and local healthcare providers looking to help more people get active with plenty of free, low-cost and paid options.

A lot of these groups are operated by non-profits such as ParkRun and associations such as State Football Associations.

Our strategy: 1. Offer free listings for 6 months to get lots of free and low cost providers onboard to establish the marketplace 2. Get help with councils and healthcare providers to promote the marketplace 3. See interest in marketplace, learn and then establish pricing

Thoughts on this strategy? Also, do we need to establish pricing from day #1 or can we simply state we are in a 6 month trial period and we will announce pricing towards end of trial?

AnimalMuppet 4 years ago |

You might say "We haven't decided on pricing yet." That communicates that you don't know; you're not holding out on them as a negotiating ploy.

But if I were one of the potential users, that would be a bit of a red flag for me. I'm less likely to invest in something if the price may cause me to drop it in six months. Your approach may hinder your growth/market penetration.

custominstall 4 years ago | |

Thanks. That is my concern as well. I wonder also if calling it a trial is perceived as is having doubt on our own product.

brutus1213 4 years ago | |

Astute comment. Nothing ticks me off more than unclear pricing on services/applications.

laurieg 4 years ago |

If you start free, you're setting yourself up to get a lot of price sensitive customers. If you set a price in 6 months, even if it's very low, they'll likely be annoyed. Maybe they didn't have any money to pay for the service anyway?

Setting a price up front means you're getting customers who get value out of your service from day one. Money talks, and there's a huge gap between free and $1.

The other option is choosing a business model where these customers never need to pay to be on the marketplace. Maybe you get money from councils? Maybe you negotiate a commission on every signup through you? You and your confounders know about the problem domain so can come up with more ideas.

custominstall 4 years ago | |

Thanks. We are considering other models especially for non-profits who are most reluctant to pay.