# Pricing Strategy

## Product Positioning

**"Lightweight OMS for Letzshop Sellers"**

A focused Order Management System built specifically for Luxembourg e-commerce. Works alongside Letzshop, not instead of it. Provides the operational tools Letzshop lacks: real inventory, correct invoicing, customer ownership.

> **Infrastructure Planning:** See [Capacity Planning](../architecture/capacity-planning.md) for resource requirements, server sizing, and scaling guidelines per tier.

---

## Market Context

### Luxembourg E-commerce Landscape
- Small market (~650,000 population)
- High purchasing power (GDP per capita ~$130,000)
- Multilingual requirements (FR/DE/EN)
- Letzshop.lu is the dominant local marketplace
- Typical Letzshop store: 50-500 orders/month

### Competitor Reference
- Letzshop charges stores ~15% commission on sales
- Enterprise OMS (SAP, NetSuite): EUR 500-5000+/month
- Local agencies for custom integrations: EUR 5,000-20,000
- Spreadsheets: Free but error-prone and time-consuming

---

## Pricing Tiers

### Essential - EUR 49/month

**Target:** Solo stores, getting started, Letzshop-focused

| Feature | Limit |
|---------|-------|
| Letzshop Order Sync | Up to 100 orders/month |
| Order Confirmation & Tracking | Included |
| Inventory Management | Up to 200 products |
| Basic Invoice (Luxembourg VAT) | Included |
| Customer List | View only |
| Team Members | 1 user |
| Order History | 6 months |
| Email Support | 72h response |

**Value Proposition:** "Stop the spreadsheet chaos. Your orders, inventory, and invoices in one place."

**Upgrade Triggers:**
- Exceeds 100 orders/month
- Ships to other EU countries (needs VAT invoicing)
- Needs team access
- Has more than 200 products

---

### Professional - EUR 99/month

**Target:** Active multi-channel stores, shipping EU-wide

| Feature | Limit |
|---------|-------|
| Letzshop Order Sync | Up to 500 orders/month |
| Order Confirmation & Tracking | Included |
| Inventory Management | Unlimited products |
| **EU VAT Invoices** | Correct VAT for any EU country |
| **Product Locations** | Warehouse/bin tracking |
| **Incoming Stock / Purchase Orders** | Track what's on order |
| **Customer Export** | CSV for Mailchimp, marketing |
| Team Members | 3 users |
| Order History | 24 months |
| Priority Email Support | 24h response |

**Value Proposition:** "Professional operations. Correct invoices. Know your customers."

**ROI Calculation:**
- Time saved: 10+ hours/month at EUR 25/hour = EUR 250 value
- Accountant VAT corrections avoided: EUR 50/month
- Price: EUR 99
- **Net value: EUR 200+/month**

**Upgrade Triggers:**
- Exceeds 500 orders/month
- Needs analytics and reporting
- Team grows beyond 3
- Accountant needs structured exports

---

### Business - EUR 199/month

**Target:** High-volume stores, teams, data-driven operations

| Feature | Limit |
|---------|-------|
| Letzshop Order Sync | Up to 2,000 orders/month |
| Everything in Professional | Included |
| **Analytics Dashboard** | Sales trends, top products, customer insights |
| **Accounting Export** | CSV/XML for accounting software |
| **Bulk Operations** | Mass product updates, bulk invoicing |
| **Advanced Reporting** | Custom date ranges, exportable reports |
| **API Access** | For custom integrations |
| **Automation Rules** | Auto-confirm orders, low-stock alerts |
| Team Members | 10 users |
| Team Roles & Permissions | Full access control |
| Order History | Unlimited |
| Priority Support | 4h response, phone available |

**Value Proposition:** "Scale with confidence. Analytics, automation, and full control."

**Upgrade Triggers:**
- Exceeds 2,000 orders/month
- Needs white-label or custom integrations
- Requires SLA guarantee
- Multiple brands/operations

---

### Enterprise - EUR 399+/month (Custom)

**Target:** Large operations, special requirements, agencies

| Feature | Notes |
|---------|-------|
| Everything in Business | Included |
| Unlimited Orders | No volume limits |
| Unlimited Team Members | As needed |
| **White-Label Option** | Remove Orion branding |
| **Custom Integrations** | Connect to ERP, accounting software |
| **Multi-Store Support** | Multiple Letzshop accounts under one dashboard |
| **SLA Guarantee** | 99.9% uptime commitment |
| **Dedicated Account Manager** | Named contact |
| **On-Premise Option** | For security-sensitive clients |
| **Custom Development** | Bespoke features on request |

**Starting at EUR 399/month** - Contact for quote

---

## Feature Comparison Matrix

| Feature | Essential | Professional | Business | Enterprise |
|---------|:---------:|:------------:|:--------:|:----------:|
| **Orders** |
| Letzshop Sync | 100/mo | 500/mo | 2,000/mo | Unlimited |
| Order Confirmation | Yes | Yes | Yes | Yes |
| Tracking Sync | Yes | Yes | Yes | Yes |
| Order History | 6 months | 24 months | Unlimited | Unlimited |
| **Inventory** |
| Product Limit | 200 | Unlimited | Unlimited | Unlimited |
| Stock Levels | Yes | Yes | Yes | Yes |
| Product Locations | - | Yes | Yes | Yes |
| Incoming Stock / PO | - | Yes | Yes | Yes |
| **Invoicing** |
| Luxembourg Invoice | Yes | Yes | Yes | Yes |
| EU VAT Invoice | - | Yes | Yes | Yes |
| Bulk Invoicing | - | - | Yes | Yes |
| Accounting Export | - | - | Yes | Yes |
| **Customers** |
| Customer List | View | View + Export | View + Export | View + Export |
| **Analytics & Reporting** |
| Basic Stats | Yes | Yes | Yes | Yes |
| Analytics Dashboard | - | - | Yes | Yes |
| Advanced Reporting | - | - | Yes | Yes |
| Custom Reports | - | - | - | Yes |
| **Automation** |
| Low Stock Alerts | - | - | Yes | Yes |
| Auto-Confirm Orders | - | - | Yes | Yes |
| Custom Automation | - | - | - | Yes |
| **Team** |
| Users | 1 | 3 | 10 | Unlimited |
| Roles & Permissions | - | - | Yes | Yes |
| **Integration** |
| API Access | - | - | Yes | Yes |
| Custom Integrations | - | - | - | Yes |
| White-Label | - | - | - | Yes |
| **Support** |
| Email | 72h | 24h | 4h | 4h |
| Phone | - | - | Yes | Yes |
| Dedicated Manager | - | - | - | Yes |
| SLA | - | - | - | 99.9% |

---

## Promotional Offers

### Launch Offer (Limited Time)

| Offer | Details |
|-------|---------|
| 14-Day Free Trial | Full Professional features |
| 50% Off First 3 Months | Any tier |
| Free Onboarding | With annual commitment |

### Annual Discount (2 months free)

| Tier | Monthly | Annual |
|------|---------|--------|
| Essential | EUR 49/mo | EUR 490/year (EUR 41/mo) |
| Professional | EUR 99/mo | EUR 990/year (EUR 82/mo) |
| Business | EUR 199/mo | EUR 1,990/year (EUR 166/mo) |
| Enterprise | Custom | Contact for annual pricing |

---

## Add-On Services

### One-Time Services

| Service | Price | Description |
|---------|-------|-------------|
| Onboarding & Training | EUR 149 | 1-hour session + setup assistance |
| Data Migration | EUR 299 | Import existing products/orders from spreadsheets |
| Custom Invoice Template | EUR 99 | Branded invoice design |

### Monthly Add-Ons

| Add-On | Price | Description |
|--------|-------|-------------|
| Additional Team Member | +EUR 9/user/mo | Beyond plan limit |
| Extended History | +EUR 19/mo | Unlimited history for Essential/Professional |
| Extra Order Capacity | +EUR 29/100 orders | Beyond plan limit |

---

## Pricing Psychology

### Why This Structure Works

1. **Essential (EUR 49) creates entry point**
   - Low enough to try without much deliberation
   - Genuinely useful for small operations
   - Natural limits trigger upgrades organically

2. **Professional (EUR 99) is the target tier**
   - EU VAT invoicing is the killer feature (compliance fear)
   - Most active stores will need this
   - Price feels reasonable for operational software

3. **Business (EUR 199) is for growth**
   - Analytics and automation justify the jump
   - 2,000 orders/month covers most high-volume stores
   - API access enables custom workflows

4. **Enterprise (EUR 399+) captures high-value clients**
   - White-label and SLA for agencies/resellers
   - Custom integrations for complex operations
   - Multi-store for the rare but valuable cases

5. **No per-order fees**
   - Unlike Letzshop's commission model
   - The more you sell, the better the value
   - Predictable costs for budgeting

6. **Annual = lower churn**
   - 17% discount is meaningful
   - 2 months free is easy to understand
   - Reduces monthly cancellation opportunity

---

## Upgrade Path Logic

```
Essential -> Professional
  Triggers: Ships to EU (VAT) | 100+ orders | Team access needed

Professional -> Business
  Triggers: 500+ orders | Needs analytics | Accountant needs exports

Business -> Enterprise
  Triggers: 2,000+ orders | White-label | SLA required | Custom integrations
```

---

## Competitive Positioning

| Alternative | Their Model | Our Advantage |
|-------------|-------------|---------------|
| Just Letzshop | Free but limited | Real inventory, correct VAT, customer access |
| Spreadsheets | Free but fragile | Automated, fewer errors, scales |
| Enterprise OMS | EUR 500+/month | Right-sized, affordable, Letzshop-specific |
| Custom Development | EUR 5,000-20,000 | Ready now, maintained, supported |
| Accountant fixes VAT | EUR 50-100/month | Built-in, automatic, instant |

---

## Sales Guidance

### Qualifying Questions

1. "How many orders do you process per month?"
   - <100 -> Essential
   - 100-500 -> Professional
   - 500-2000 -> Business
   - 2000+ -> Enterprise

2. "Do you ship to other EU countries?"
   - Yes -> Professional minimum (VAT invoicing)
   - No -> Essential may suffice

3. "How many people handle orders?"
   - 1 -> Essential
   - 2-3 -> Professional
   - 4-10 -> Business
   - 10+ -> Enterprise

4. "Do you need analytics and reporting?"
   - Yes -> Business minimum

5. "Do you need to connect to other systems (ERP, accounting)?"
   - API needed -> Business
   - Custom integration -> Enterprise

### Objection Handling

**"EUR 49 is too much for what I get"**
> "How much time do you spend on manual order entry and spreadsheets each month? At EUR 25/hour, 2 hours of saved time pays for itself."

**"I can do this with spreadsheets"**
> "You can, until you oversell because inventory wasn't updated, or your accountant flags incorrect VAT. How much does one of those mistakes cost?"

**"Why do I need Professional for EU invoices?"**
> "EU VAT rules are complex - wrong rate, wrong country, wrong invoice = compliance issues. We handle this automatically so your accountant doesn't have to fix it."

**"Business seems expensive"**
> "At 500+ orders/month, you're doing at least EUR 25,000/month in revenue. EUR 199 is less than 1% of that, and the analytics alone will help you find opportunities to grow."
