Pricing for maximum value

Choosing the right subscription price is a key component of how providers can optimize their Roomla service.

Subscriptions should be priced on the perceived value they create, and not according to the revenues the provider wants to aspire to have. Price too high for what is being delivered, and many potential customers won't bite. Pricing low may increase demand, but runs the risk of being of lesser quality.

People are putting more value into smaller, local, more amateur services over their pricier, more professional counterparts. Ride hailing services are a good example of consumers expecting to pay less for a local driver, over a very experienced professional, who provides a very competitive offering.

Resist the urge to change pricing often, as it creates a sense of uncertainty and confuses the expectation of value.

Consideration for future scale

While it is up to providers to gauge the price sensitivity of their customer base, they should factor in the benefits of scale when determining an optimal pricing strategy. In the made-up example below, a lower price point generates a sense of greater value, leading to more subscribers in the long run (with lower revenues in the short run.)

Subscription pice	Subscribers	Total revenue
$50	20	$1,000
$30	50	$1,500
$15	150	$2,250

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