Introduction: At Groovit, we propose a subscription-based model, where customers pay a monthly fee for your services. Additionally, we recommend an initial one-time payment at the beginning of your collaboration with each customer, covering the research and creation of the original music database and consulting services. This guide will help you define your pricing strategy to ensure a fair and sustainable business model.
Start-Up Cost for Original Music Database: The start-up cost could be an essential aspect of your pricing structure. There are two key reasons for applying this cost:
A. Time & Effort: Building a customized music identity for each customer requires significant time and effort. From sourcing appropriate music to carefully curated playlists, you invest valuable resources to meet their needs.
B. Long-Term Relationship: Your time spent on creating the first customized playlists deserves compensation. The start-up cost ensures payment for this effort while also demonstrating your customer's commitment to a long-term partnership.
Calculate the start-up cost based on an hourly rate, considering the hours your customer wants for their Original Music Database. The repetition ratio, determined by the customer's venue working hours and database size, will influence future updates.
Monthly Subscription Fee: The monthly subscription fee covers ongoing updates to the music database and your operational costs. Consider the following criteria when determining the fee:
A. Working Hours of the Venue: Venues with longer operating hours require more playlists and updates. Price your subscriptions accordingly to reflect the amount of work involved.
Example:
150 euros/month for 8 hours of broadcasting per day
180 euros/month for 12 hours of broadcasting per day
210 euros/month for 16 hours of broadcasting per day
B. Customer Limitation: To maintain a high level of customization and curation, consider limiting the number of customers you can effectively serve.
C. Your Popularity in the Market: Consider your reputation and demand within the industry. More popular professionals often command higher fees. Take this into account when designing your pricing policy for customer subscriptions.
Conclusion: Defining your price policy is crucial to establish a fair and sustainable model as a music curator. The start-up cost for the original music database compensates your effort, while the monthly subscription fee ensures ongoing updates and covers your operational expenses. By considering factors such as working hours, customer limitations, and market popularity, you can set a pricing structure that reflects the value you provide.
Remember, pricing should strike a balance between compensation for your services and affordability for your customers. As you grow your clientele and build your reputation, regularly reassess and adjust your pricing policy to reflect your expertise and the evolving market dynamics.