Pricing Strategy¶
Detailed pricing and monetization options.
Value Proposition¶
Problem → Solution → Value¶
| What Users Lose | Solution | Value Created |
|---|---|---|
| 2 hours/week searching | AI-powered unified search | 100 hours/year recovered |
| Confusion across Drives | Single interface for all Drives | No context switching |
| File discovery friction | AI summaries | Instant understanding |
| Permission confusion | Visibility into access | Self-serve access requests |
Estimated Value per Organization: - 100 employees × 2 hours/week × $50/hour = $520,000/year
Our pricing captures 0.01-0.1% of this value.
Proposed Pricing Tiers¶
SaaS Model (Recommended)¶
┌─────────────────┬────────────────────┬────────────────────┐
│ STARTER │ PROFESSIONAL │ ENTERPRISE │
├─────────────────┼────────────────────┼────────────────────┤
│ $99/month │ $299/month │ Custom Quote │
│ │ │ │
│ Up to 100 users │ Up to 500 users │ Unlimited users │
│ 50 summaries/mo │ 500 summaries/mo │ Unlimited │
│ Email support │ Priority support │ Dedicated support │
│ Standard SLA │ Standard SLA │ 99.9% SLA │
│ │ │ Custom integrations│
└─────────────────┴────────────────────┴────────────────────┘
Annual Billing Discount¶
- 5% discount: Annual prepay
- 10% discount: 3-year commitment
- 15% discount: 5+ year commitment
Example: - Monthly: $299/month × 12 = $3,588/year - With 10% discount: $3,229/year ($269/month)
User-Based Add-Ons¶
- Each additional 100 users: +$50-100/month
- Overage charges: $0.50 per additional user
Example: - Professional plan (500 users): $299/month - Adding 200 more users: +$100/month = $399/month total
Pricing Justification¶
Cost Analysis¶
| Cost Item | Annual |
|---|---|
| Google Gemini API | $500-2,000 per customer |
| Google Drive API | $100-500 per customer |
| Firebase Hosting | $50-200 per customer |
| Customer Support | $1,000-2,000 per customer |
| Engineering/Maintenance | $2,000-5,000 per customer |
| Total Cost per Customer | $3,650-9,700 |
| Starter Price ARV | $1,188 |
| Professional Price ARV | $3,588 |
| Margin | 0-100% |
Note: Margin improves with scale (shared infrastructure costs)
Competitive Positioning¶
| Solution | Price | Users | AI Search |
|---|---|---|---|
| Google Drive | Free | Any | ❌ |
| Microsoft 365 | $15-30/user | Any | ⚠️ Limited |
| Enterprise Search | $10K-100K/mo | Any | ✅ Full |
| Skigk Søkeapp | $99-299/mo | 100-500 | ✅ Full |
Sweet Spot: Best value for organizations 100-5,000 employees
Revenue Models¶
Model 1: Per-Organization (Recommended)¶
Pricing: $99-299/month flat fee
Advantages: - ✅ Simple to understand - ✅ Predictable budgeting - ✅ No per-user tracking - ✅ Easy to scale
Disadvantages: - ❌ May underprice large customers - ❌ May overprice small customers
Model 2: Per-User¶
Pricing: $5-15 per user per month
Advantages: - ✅ Fair for all sizes - ✅ Aligns with Workspace pricing - ✅ Easy to add users
Disadvantages: - ❌ User count variability - ❌ Need to track seats - ❌ Churn risk when users leave
Model 3: Hybrid (Usage-Based)¶
Base: $99/month Plus: $1 per 1,000 searches (overage)
Advantages: - ✅ Flexible for variable usage - ✅ Revenue scales with adoption
Disadvantages: - ❌ Unpredictable costs - ❌ Complex billing - ❌ Potential for bill shock
Model 4: Freemium¶
Free Tier: - 5 searches/month - 1 AI summary/month
Pro Tier: $10/user/month - Unlimited searches - 100 AI summaries/month - Priority support
Advantages: - ✅ Low friction entry - ✅ Viral potential - ✅ Usage data
Disadvantages: - ❌ Low conversion rate - ❌ Support overhead - ❌ Requires significant scale
Discounting Strategy¶
Circumstances for Discounts¶
✅ DO discount for: - Annual prepayment (5-10%) - Multi-year commitment (10-15%) - Non-profits/charities (25-50%) - Educational institutions (25-50%) - Strategic partnerships (15-30%)
❌ DON'T discount for: - Initial negotiation (stick to price) - "We'll use more later" (track actual usage) - Competitive pressure (compete on value, not price) - Individual requests (confuses market)
Negotiation Limits¶
- Maximum discount: 20% (unless strategic partnership)
- Minimum price floor: $50/month (covers support)
- No discount without annual commitment (maintain cash flow)
Add-On Revenue¶
Premium Features (Future)¶
| Add-On | Price | Value |
|---|---|---|
| Advanced Analytics | $50/month | Usage insights, trends |
| Priority Support | $30/month | 4-hour response time |
| Custom AI Models | $100/month | Train on your data |
| API Access | $50/month | Integration capabilities |
| Audit Logs | $25/month | Compliance/security |
Professional Services¶
| Service | Price | Timeline |
|---|---|---|
| Setup & onboarding | $500 | 1 week |
| Custom training | $200/hour | Flexible |
| Integration development | $150/hour | Variable |
| Dedicated admin | $2,000/month | Monthly |
Enterprise Sales¶
Enterprise Customers (1,000+ users)¶
Pricing: Custom negotiation
Typical Structure: - Base: $500-1,000/month - Per-additional-100-users: $100-200 - Volume discount: 20-30%
Example (2,000 users): - Base: $1,000/month - Add-ons: 2,000/100 × $150 = $3,000/month - With 25% discount: $3,000/month total
Annual Commit: Negotiate for 3-year term
Enterprise Support¶
- Dedicated account manager
- 4-hour SLA on critical issues
- Quarterly business reviews
- Custom feature requests
- Training and certification
Packaging & Messaging¶
For Startups/SMBs¶
Message: "Unlock your data with AI-powered search"
Price Point: Starter plan ($99/month)
Emphasis: - Easy 5-minute setup - No IT required - Instant ROI
For Mid-Market¶
Message: "Enterprise search for Google Workspace"
Price Point: Professional plan ($299/month)
Emphasis: - Admin controls - Usage analytics - Priority support
For Enterprise¶
Message: "Strategic data intelligence for your organization"
Price Point: Custom quote
Emphasis: - Dedicated support - Custom integration - Compliance (SOC 2, etc.) - SLA guarantees
Go-to-Market Pricing¶
Year 1: Launch Pricing (Aggressive)¶
- Starter: $79/month (vs. $99 later)
- Professional: $199/month (vs. $299 later)
- Goal: Acquire 50 customers quickly
Year 2-3: Market Pricing¶
- Starter: $99/month
- Professional: $299/month
- Goal: Optimize revenue per customer
Year 4+: Premium Pricing¶
- Starter: $129/month
- Professional: $399/month
- Enterprise: Custom (starts at $2,000/month)
Rationale: 1. Early adopters pay lower price 2. As product improves → increase price 3. Existing customers get grandfather pricing
Packaging Examples¶
Offer 1: Startup Package¶
- Starter plan: $79/month
- 3-month commitment
- Free onboarding
- Total value: $237 + onboarding
Offer 2: SMB Package¶
- Professional plan: $199/month
- 1-year commitment (10% discount)
- Priority email support
- Total value: $2,148/year
Offer 3: Enterprise Package¶
- Custom plan with 2,000 users
- Custom quote: $3,000/month
- Dedicated account manager
- Quarterly business reviews
- Total value: $36,000/year
Payment Options¶
Billing Cycles¶
- Monthly: Full price
- Annual: 5% discount, pay upfront
- 3-year: 10% discount, pay upfront
Payment Methods¶
- Credit card (Stripe)
- ACH transfer (enterprise)
- Invoice (net 30, enterprise only)
Free Trials¶
- 14 days: Full features
- No credit card required
- Converts at 25-30%
Expansion Revenue¶
Upsell Strategy¶
Trigger: Customer reaches usage limits - Approaching search quota? → Upgrade - Running out of summaries? → Buy add-on - Growing team? → Upgrade plan
Target: 10-15% of customers expand per year
Cross-Sell Strategy¶
Timing: After successful launch - Existing Workspace tools integration - Advanced reporting add-on - Professional services
Target: 5-10% attach rate on add-ons
Retention & Churn¶
Goal: < 5% annual churn
Strategies: - Regular check-ins (quarterly) - Usage-based alerts - Proactive support - Feature requests tracking
Financial Model¶
Break-Even Analysis¶
Fixed Costs (Annual): - 1 Engineer: $120K - Support: $50K - Infrastructure: $20K - Other: $30K - Total: $220K
Per-Customer Costs: - API usage: $300-500/customer/year - Support: $500-1,000/customer/year - Total: $800-1,500/customer/year
Starter Plan Revenue: $1,188/customer/year
Break-Even Point: - $220K ÷ ($1,188 - $1,000) = 1,222 customers needed - More realistic: 100-200 customers with Professional plan
Pricing Evolution¶
Q1 2026: Launch¶
- Starter: $79/month
- Professional: $199/month
- Focus: Acquisition
Q3 2026: Growth¶
- Starter: $99/month
- Professional: $299/month
- Focus: Expansion
Q1 2027: Enterprise¶
- Enterprise: Custom quotes
- Focus: Revenue per customer
Q1 2028: Premium¶
- Starter: $129/month
- Professional: $399/month
- Enterprise: $2,000+/month
- Focus: Profitability
Last Updated: January 2026 | Status: Proposed