# Pricing Strategy

## Product Positioning

**"Lightweight OMS for Letzshop Sellers"**

A focused Order Management System that works alongside Letzshop, not instead of it. Provides the operational tools Letzshop lacks: real inventory, correct invoicing, customer ownership.

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## 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 vendor: 50-500 orders/month

### Competitor Reference
- Letzshop charges vendors ~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 vendors, 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 vendors, 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
- Multiple Letzshop vendor accounts
- Needs API for integrations
- Team grows beyond 3

---

### Business - EUR 199/month

**Target:** High-volume vendors, teams, multiple operations

| Feature | Limit |
|---------|-------|
| Letzshop Order Sync | Unlimited orders |
| Everything in Professional | Included |
| **Multi-Vendor Support** | Multiple Letzshop accounts |
| **API Access** | For custom integrations |
| **Accounting Export** | CSV/XML for accounting software |
| Team Members | 10 users |
| Team Roles & Permissions | Full access control |
| Order History | Unlimited |
| Phone Support | Available |
| Dedicated Onboarding | 2-hour session included |

**Value Proposition:** "Enterprise-grade OMS at SMB pricing."

---

### Enterprise - Custom Pricing

**Target:** Large operations, special requirements

| Feature | Notes |
|---------|-------|
| Everything in Business | Included |
| Unlimited Team Members | As needed |
| Custom Integrations | Built to spec |
| SLA Guarantee | 99.9% uptime |
| Dedicated Account Manager | Named contact |
| On-Premise Option | If required |

**Starting at EUR 499/month** - Contact for quote

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## Feature Comparison Matrix

| Feature | Essential | Professional | Business |
|---------|:---------:|:------------:|:--------:|
| **Orders** |
| Letzshop Sync | 100/mo | 500/mo | Unlimited |
| Order Confirmation | ✓ | ✓ | ✓ |
| Tracking Sync | ✓ | ✓ | ✓ |
| Order History | 6 months | 24 months | Unlimited |
| **Inventory** |
| Product Limit | 200 | Unlimited | Unlimited |
| Stock Levels | ✓ | ✓ | ✓ |
| Product Locations | - | ✓ | ✓ |
| Incoming Stock / PO | - | ✓ | ✓ |
| **Invoicing** |
| Luxembourg Invoice | ✓ | ✓ | ✓ |
| EU VAT Invoice | - | ✓ | ✓ |
| Accounting Export | - | - | ✓ |
| **Customers** |
| Customer List | View | View + Export | View + Export |
| **Team** |
| Users | 1 | 3 | 10 |
| Roles & Permissions | - | - | ✓ |
| **Operations** |
| Multi-Vendor | - | - | ✓ |
| API Access | - | - | ✓ |
| **Support** |
| Email | 72h | 24h | 24h |
| Phone | - | - | ✓ |
| Onboarding | - | - | Included |

---

## 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) |

---

## 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 |
| Additional Vendor Account | +EUR 29/mo | For Professional tier |
| Extended History | +EUR 19/mo | Unlimited history for Essential |

---

## 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 vendors will need this
   - Price feels reasonable for operational software

3. **Business (EUR 199) provides anchor**
   - Makes Professional look affordable
   - Captures high-value customers
   - Multi-vendor is a clear enterprise need

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

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

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## 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+ → Business

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+ → Business

4. "Do you have multiple Letzshop accounts?"
   - Yes → Business

### 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."