Ask HN: Project based pricing or try and build a Saas app?
Don't know which way to go on this one, client needs a work order + inventory app. I was about to simply quote a price for a bespoke app, then thought why not charge them nothing... build the app ourselves and have them subscribe to it as the first customer. I would ask that they pre-pay a year on sign up.
One possible issue arises if they decide they don't need it after I've already paid to build it.
There has been a lot of discussion on project/value based pricing vs hourly, but how about we throw subscription based pricing in as a third option?
Thoughts or suggestions?
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If you plan on making a SaaS product, what is the target market you plan on selling to?
Small businesses? FM companies? Large organizations?
Are they the type of market that would look for a subscription based service or will they seek a more traditional sales channel with hand-holding?
How do you plan on handling the actual process flow for work orders? Each subscriber may have a slightly different way in which they want it to work.
It could certainly be possible that you can build and sell an SaaS product but you may want to do some market research first.
(Disclaimer: Our company sells FM related software and WO and Inventory Management is one part of it.)
What did they offer you such that "Work for free and bear all project risk" is an attractive option?
1) Charge for bespoke development as per usual.
2) Negotiate such that you own the IP after the project is over.
3) Use the IP to build the SaaS.
4) If they want to migrate to your SaaS and take advantage of ongoing improvements for your standard monthly rates, wonderful. If not, maintenance at your prevailing contract rates or via a negotiated maintenance contract.