Ask HN: Should I charge the military more to use my SAAS?
Perhaps free for personal use, $amount for business users and $amount X 2 for military.
Any thoughts on this? Good idea, not good idea?
Perhaps free for personal use, $amount for business users and $amount X 2 for military.
Any thoughts on this? Good idea, not good idea?
http://www.fedmarket.com/contractors/GSA-and-Most-Favored-Cu...
If you deliberately charge the military more than everyone else without having a valid business-related reason to do so, they may just refuse to do business with you.
It is routine for enterprise vendors to charge more to government because of the more involved process in selling and managing product for government and associated costs. But the way it works is enterprise vendors have a list price at which anyone including competitors can buy the product. Then vendor can decide how much discount from list price to offer to different customers.
I think there are laws that you will run afoul of when discriminating against a group of customers without any business justification.
Why not? I'm free to charge differently if I want to aren't I?
>>I think there are laws that you will run afoul of when discriminating against a group of customers without any business justification.
Hmmm, doesn't sound right to me. Can you be more specific about which laws you mean?
Price Discrimination: Robinson-Patman Violations https://www.ftc.gov/tips-advice/competition-guidance/guide-a...
Price Fixing https://www.ftc.gov/tips-advice/competition-guidance/guide-a...
A Guide to Retail Pricing Laws and Regulations http://www.nist.gov/pml/wmd/laws/pricing-laws.cfm
Consumer Protection Laws and Your Business http://www.nolo.com/legal-encyclopedia/consumer-protection-l...
I'm interested less in getting a pile of links but more hearing why you think it would be against the law.
Firstly there are a lot of veterans out there, plus family members and friends. There is a good change they'll either not choose your product or advocate not choosing it. Secondly companies like to avoid risk, and reputational risk is a big form of risk. Firstly you're less likely to be allowed to reference a company as a client on a website that proclaims this policy. Secondly it is an added risk to be named as a client, it is an easy viral article for someone to produce tarring every client. Thirdly it frankly makes you look unprofessional and thus someone I don't want to do business with.
I'm in the military and I don't mind people who have a problem with what we do. Conscientious objectors display some of the greatest moral courage around. If you said you didn't want to sell to the military/gov then fair play, I can respect that. Charging more tells me your morals are susceptible to monetary influence.
What I would do . . . if you have existing military users, I would look at their usage patterns, number of users, data, etc . . . and change your tiers to charge them more based on their typical use of your SaaS.
That would be the best way to do it, create a tier pricing that would apply to them but doesn't spell it out in the pricing page.
Good luck landing a potentially large user for your SaaS.
The standard approach is to advise that they will need to purchase the enhanced security version which will be $whatever, which is also how SaaS vendors deal with large companies and other clients whose custom they're only willing to consider because of their deep pockets
What follows is a sales dance with "confidential" pricing discussions.
This may or may not work for buyers.
I personally staying away from vendors who are using this tactics unless there is no other choice.
http://jacquesmattheij.com/double-your-price-and-no-im-not-k...