What We Charge and Why

When deciding how to price the services my company offers, I mostly thought about two things. 1) How much is this service worth to them / how much benefit does it bring? 2) How much would these small business owners be willing to pay while not having to reach too deep into their pockets?

My business offers a complete front to back online management system and infrastructure for small in-home daycare owners to easily and efficiently run their business. Our technology will be making major improvements in how these owners operate their business, which will allow them more time to focus on other things besides administrative tasks, which will hopefully allow their businesses to thrive. For this reason, I think what we are offering them is huge, and we can charge according to that. This online management system could save dozens of hours every month, and many headaches. Currently, I am imagining our price point for our base service would range from $100-200 as a monthly fee. (We are also considering making this an annual surcharge as opposed to monthly. Need to do some more research on the two different approaches.)

After talking to some friends who have worked closely with a few small in-home daycares in the area, I was surprised to find out these tiny business actually generate a large income. This of course was good news for us, because it means they at least have the money to be able to afford our product. For this reason, I think our price point is very fair (if not too low). I don’t foresee too much trouble convincing a business owner to spend $100-200 a month to completely flip around their operation for the better.