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Pricing For Profits: Three Simple Rules To Price Your Product

However, you should follow some simple rules when pricing every product to ensure success. This article provides common tips to price your SaaS product properly.

Published

2 years ago

September 8, 2022

TwinzTech

4 Benefits of Software for Your Business

SaaS pricing is the most challenging aspect of launching a business. It’s difficult and time-consuming, and if you make any mistakes, it can quickly spell disaster for your company. That being said, it doesn’t have to be this difficult.

Many startups ask services to develop valuable pricing strategies for their businesses to delight customers and increase revenue. However, you should follow some simple rules when pricing every product to ensure success. This article provides common tips to price your SaaS product properly.

Table of Contents

1. What Is Product Pricing?

Product pricing is the process of setting the price for a product, which enables customers to purchase a product and receive value for their money. SaaS companies often find it difficult to put a price on their products because they provide value over time. Everybody should follow three major rules while setting a price on SaaS products listed below.

2. Common SaaS Pricing Models

SaaS pricing models are critical to your business and different from other product costs. They are rather simple and make it easy to understand. These pricing models are divided into four common categories:

Flat Rate Pricing

Flat rate pricing is one of the simplest SaaS pricing models. It usually refers to a one-time payment to use the product and get unlimited access. Usually, this model is used for simple products or services that have clearly defined features, while you are charged per month, per year, or the number of users.

This model is good when you’re targeting small businesses because they want simplicity and prefer a cheaper product with fewer features. Your customers may be less price sensitive in this case because they are saving money by paying less upfront.

Usage-Based Pricing

Revenue is generated from the usage of the product. This model is usually used for products that provide a certain level of service or quantity. The cost can be determined by the amount of time spent, storage space, or the number of people using it.

It is also used to sell add-ons like support packs, extra features, or additional products to those who want more than they currently have. This model is good if your customers are looking for more value and expect more features in a product over a longer period, and they want to pay only if they use it after buying.

Tiered Pricing Model

Tiered pricing charges users based on the number of licenses or products they bought. It’s the most popular SaaS pricing model because most customers expect to pay for what they use, and it gives them a chance to save money by paying less for the product they use less often. With this model, you need to provide some basic features at a higher price, and when customers require more features or extra functionality, you will lower the price.

Per User Pricing Model

Per-user pricing is a SaaS pricing model used when you want to set a specific price for each user. This model is good if your product is targeted to different people in terms of features and requirements.

The amount a customer pays will depend on the number of users, which makes customers think carefully before adding users. It’s usually used when the seller doesn’t want to share their secrets and can’t provide a fixed price that covers all users’ needs because different customers require different features.

3. Value-Based Vs. Needs-Based Software Pricing

Value-based pricing is one of the most common pricing strategies in the software industry. Compared to needs-based pricing, it can give a more accurate idea of what value customers get from your product. Value-based vs needs-based software pricing are different, and it will be clear once you know the difference between them.

4. Three Simple Rules To Price Your Product

The three simple rules to price your SaaS product follow below:

Know Your Customers

It is necessary to understand your customers. You need to know their behavior, needs, and what they expect from the product you offer. You should also check out similar products that already exist in the market to gain more information about the current trends of the pricing models and how customers are willing or not ready to pay for them. They will judge the value for the money, and if it’s low, they won’t purchase your product no matter how great it is.

Know The Market

Knowing the market means you should compare your product with other similar products. You should understand the price of these products and how your customers are willing to pay for them. It is also important to check out new features as well as bugs for those similar products, which can tell you about the future of your business and what platform people are using.

Consider The Cost Structure

It is important to consider the cost structure of your product as well. You have to understand how much time, resources, and money it will take to build your product. Also, you need to know what time a customer will spare for it at first so that you can calculate the pricing model accordingly for the business to succeed.

5. The Bottom Line

SaaS pricing is about understanding customers’ needs. You need to understand what your customers want and what they are willing to pay for and know all the significant rules related to SaaS pricing models. It is also important to know your cost structure and how much time and money it will take to build the product. Each SaaS pricing model has unique pros and cons, but they will serve you best if you follow the three simple rules mentioned above.

Computer Network

7 More Secure Gmail Alternatives

Mailbox.org, Mailfence, Posteo, Tutanota, ProtonMail, StartMail, and Kolab Now are safer alternatives to Gmail. Read this article to learn more.

Published

2 months ago

February 27, 2024

TwinzTech

Millions of consumers have chosen Gmail as their email provider for years, but let’s be honest: Google has more personal information about us than we do. You’ve come to the correct spot if you’re searching for a more secure solution to keep hackers and tech giants from accessing your data. In this article, we’ll look at a few safe Gmail substitutes that won’t sell your soul to the highest bidder, at least not without your permission. Now, let’s get started!

Table of Contents

1. Why Gmail is a No-Go for Your Privacy

Although millions of people use Gmail as their preferred email service, it has issues. It may be as good as a submarine’s screen door to protect sensitive information. Let’s examine Gmail’s privacy shortcomings and why you might want to move.

Gathering of Data: Gmail is a component of the Google network. Furthermore, the latter is well-known for its data-collecting methods, which include email scanning and privacy-invading techniques. It gathers much information about its users, such as search query history, email content, location data, and even information from third parties on websites that use Google services.
Focused Marketing: Google may appear invasive to users when it displays customized advertisements based on the information it gathers from Gmail.
Entry by Other Parties: Google faced criticism in 2018 for granting access to users’ Gmail data to third-party Apps. The business then imposed more stringent guidelines on such apps. You must still check your account settings and set your limitations to control third-party access.
Security Issues: Gmail has had security breaches despite its robust security measures. In 2018, a software issue in Gmail exposed millions of users’ confidential information.

2. What to Look for in a Gmail Alternative

Does the thought of someone else reading your texts make you shudder? So, choosing an email service that prioritizes privacy is essential. While no email service is perfect, few prioritize your privacy while providing features like those of Gmail. Therefore, you should adhere to the following when selecting such an alternative:

Messages are Important

You need to move your current contacts and messages if you intend to move from Gmail. Support for the SMTP, POP, and IMAP protocols enters the picture. Users may access and control their email using various devices and programs.

A Secure and Private-Friendly Area

Email service providers in Europe, like those in Germany or Switzerland, prioritize privacy and comply with GDPR. They take strong measures to protect your information, but under certain legal circumstances, they may need to disclose it. However, providers that use strong encryption and follow secure practices have less data to share because of their experience in information security.

Standard for Encryption

Only the intended recipient can access the message using an email provider with end-to-end encryption (E2E). The provider must use a strong encryption standard to ensure robust data security. Pretty Good Privacy (PGP) encryption is a promising option. Many email services have transitioned to OpenPGP encryption, a collaborative, open-source iteration of PGP known for its heightened reliability and security.

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What to Look for in a Gmail Alternative: Nice to Haves

There are a few more aspects besides the above-discussed necessities when looking for a Gmail substitute.

People typically view open-source software as less prone to serious defects and covert backdoors.
The options for anonymous registration and payment prioritize the highest level of privacy and don’t require you to disclose personal information.
Practical non-email functions: Gmail is capable of much more than just managing contacts and sending and receiving messages. It also has tasks, notes, and a calendar. It makes sense to desire comparable features when moving to a new provider.

3. Best Secure Alternatives to Gmail

Even if there could not be a perfect Gmail substitute that satisfies every need, we’ve looked for email service providers that almost certainly fulfill every requirement. These are our selections, not in any particular sequence.

Mailbox

Cost: $1 per month
30-day free trial available; no free version
Headquartered in Germany
Storage: 5–50 GB of cloud storage; 2–25 GB of mail storage
Version on the web

Mailbox has been ad-free and budget-friendly since 2014. It serves both individuals and businesses. The platform provides encrypted email, a calendar, a task planner, cloud storage, and more. The app is feature-packed and has a user-friendly interface.

Mailbox ensures security via German data laws, allowing anonymous registration and payment. Full PGP support and server-side data encryption in Germany are available options. It’s compatible with SMTP, POP, and IMAP for third-party mobile apps since it lacks dedicated ones.

Mailfence

Cost: $2.50 per month
Free scheme: Certainly
Based in Belgium: Adherence to Regional and Federal Data Protection Regulations
Storage: 5–50 GB
Online edition

This service ensures the security of your emails by encrypting them with OpenPGP. In addition, it offers user-friendly features like a calendar and file storage. They are committed to supporting green energy and donating to digital rights causes. Moreover, they maintain transparency through reports and open-source code.

Mailfence ensures privacy by encrypting all messages using the E2E OpenGPG standard. You can easily import your emails from different mail services, as Mailfence supports POP, SMTP, and IMAP. It is accessible through its web app or a progressive web app (PWA), making it compatible with Android and iOS devices.

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Posteo

Cost: $1 a month
No free plan
Based in Germany, adherence to local data protection regulations and the GDPR
Storage: 2–20 GB
Online edition

Posteo is an affordable email provider with a focus on privacy. It offers encrypted email, contacts, and calendars, similar to Mailbox.org. Posteo uses OpenPGP to ensure message security and allows you to import content from Gmail while keeping it synchronized.

Posteo strongly focuses on privacy, employing powerful encryption (S/MIME or OpenPGP), and secure access through TLS encryption. They don’t keep logs, eliminate IP addresses from messages, and offer the option to pay anonymously using cash sent by mail. If you prefer to use credit cards or PayPal, rest assured that Posteo keeps payment details and account information stored separately.

The service is easily accessible using your preferred third-party email client; however, no desktop or mobile apps are available.

Tutanota

Cost: $1.20 per month
Free scheme: Certainly
Based in Germany, adherence to national and local data protection regulations
Storage: 1–1000 GB
Applications for Windows, Linux, iOS, Android, and macOS; browser extensions

Tutanota is a privacy-focused e-mail service. It keeps your mailbox and contacts completely encrypted and stores data securely in German data centers that use renewable energy. The service follows a zero-knowledge model, meaning it doesn’t record cookies and allows you to create an account anonymously without providing a phone number.

Tutanota distinguishes itself by ditching OpenPGP and external service support like IMAP or SMTP. Instead, it relies on high-level AES and RSA encryption for the utmost email security, covering subject lines and addresses. Its unique feature includes sending encrypted emails to non-Tutanota users. Moreover, Tutanota prioritizes privacy with perfect forward secrecy (PFS), IP address removal, and two-factor authentication.

Tutanota has a clean design, an integrated search feature, and an easy-to-use interface with customization possibilities. Since the service is open-source, professionals in cybersecurity can verify that the code functions as intended.

ProtonMail

Cost: $3.99 per month
No charge plan:
Based in Switzerland, adherence to local privacy laws and the GDPR
Storage: up to 15 GB
Applications for Windows, Mac OS, Linux, iPhone, and Android

ProtonMail an open-source email service, may not be the most affordable option, but it is highly user-friendly and secure. This service makes it easy for users to switch from Google or Outlook, offering dedicated apps and a Bridge app for encrypted account use with clients like Outlook or Apple Mail (available with paid accounts).

Proton uses advanced encryption to protect your messages and attachments. It also has two-factor authentication and features a calendar and contacts app. You can send secure emails to people who don’t use Proton. Proton puts your privacy first by not scanning your emails, logging your IP address, or asking for personal information when you sign up. However, the subject lines and email addresses are not encrypted.

StartMail

Cost: $3 per month
No free plan (7-day trial period)
Based in the Netherlands and compliant with local privacy legislation and the GDPR
10+ GB of storage
The web version

StartMail, created by the same team behind Startpage, prioritizes privacy. It offers features such as end-to-end PGP encryption, anonymous email aliases to combat spam, and two-factor authentication. StartMail minimizes data collection by deleting browsing data after each session while still keeping encrypted IPs for three days for security reasons.

StartMail is a secure email service that offers server-side encryption for added safety. It allows you to create temporary emails for various services and send encrypted, password-protected emails, like Tutanota. With support for IMAP and SMTP, you can integrate it with other email services and easily import your Gmail content and contacts. StartMail also accepts cryptocurrency payments for enhanced security.

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Kolab Now

Cost: $5.47 per month
30-day free trial available; no free version
Based in Switzerland, adherence to local privacy laws and the GDPR
5+ GB of storage for emails.
Web version

Kolab Now is a full email suite from Switzerland that focuses on privacy. It includes email, contacts, scheduling, calendars, collaboration, file-sharing tools, and cloud storage. You can increase the free space of each account, which starts at 5 GB, as needed.

Kolab Now stands out because of its fully open-source software. It means that it uses PGP encryption and perfect forward secrecy to ensure maximum data security. It also makes transitioning from Gmail a breeze, with seamless import support via POP, IMAP, and SMTP protocols.

4. Conclusion

These Gmail substitutes all emphasized their users’ security and privacy and included features like anonymous registration and end-to-end encryption. They openly disclose how they handle user data and operate in countries with robust data protection regulations. Pricing and storage differ based on your chosen service and plan, so consider the essential features.

If you’ve decided to give Google another go or want to improve your online security and privacy, employ extra tools, such as a robust Virtual Private Network (VPN) program. ExtremeVPN lets you send anonymous emails, keep safe from prying eyes, and improve your online privacy by protecting your online identity, providing you with a new IP address, and using the cutting-edge AES-256 encryption standard.

Obtain the ExtremeVPN software for more peace of mind and safer browsing and emailing.

FAQs

What is a superior Gmail substitute?

Mailbox.org, Mailfence, Posteo, Tutanota, ProtonMail, StartMail, and Kolab Now are safer alternatives to Gmail. Read this article to learn more.

Which free email service is the best?

Gmail is the most widely used free email service, yet it has previously faced criticism for its privacy protection policies. Consider Mailbox.org, Mailfence, Posteo, Tutanota, ProtonMail, StartMail, and Kolab If you seek safer alternatives, there are several that provide free trials or free programs. Use other tools, like a dependable VPN program, to increase online security. Read this article to find out more.

Which email is the safest?

Mailbox.org, Mailfence, Posteo, Tutanota, ProtonMail, StartMail, and Kolab Now are some of the safest email providers. Read this blog article to find out more about each.