Pricing Question

[manlymatt83]

If you were buying a backup package from a backup provider, which sort of plan would you prefer:

$10 service fee, $1.50 per gigabyte, pay for what you use

OR

Plans:

$10/mo for 1 GB
$20/mo for 10 GB
$30/mo for 25 GB
$60/mo for 50 GB

etc.

The first package you pay for what you use, but there's no tiered discount. So the people using 1 GB of storage only pay $11.50/mo, but when they get to 200 GB, they pay $300/mo, whereas with the tiered plan they may only pay $225 or something.

Thoughts?

 

[Newbian]

If you crash this much then I think it's time to find a new host.

 

[DeviousTrap]

Plan structure wise, I'll take the latter. However, I hope that those aren't your actual prices because they a far out of line with the competition.

 

[CycloWizard]

Obviously, it depends on how much space you'll use. Plan #1 is advantageous as long as 10+1.5x<Plan #2(x). #2 will almost always be cheaper unless only doing very small backups. *shrug*

 

[manlymatt83]

Originally posted by: CycloWizard
Obviously, it depends on how much space you'll use. Plan #1 is advantageous as long as 10+1.5x<Plan #2(x). #2 will almost always be cheaper unless only doing very small backups. *shrug*

Would it be best to offer both?

 

[manlymatt83]

Originally posted by: DeviousTrap
Plan structure wise, I'll take the latter. However, I hope that those aren't your actual prices because they a far out of line with the competition.

No, they aren't way out of line with the competition. This is managed backup for managed servers. For the service, its actually quite cheap.

 

[manlymatt83]

Can I get more input here?