How do I calculate discounts for pricing plans for bigger volumes of a product?

In theory they could own the business as long as the profit of that business were used to further the non-profit work of the school. The bigger question would be whether the school actually owns the business or whether you as a separate non-profit were operating within the facilities of the school.

In my experience, and based on the way I coach my clients, creating a pricing model without first creating a business model is an indication of a poor strategy. That said, here are my thoughts based on the information you've provided: 1. You are incorrect about your assumption of "the less the fee, the greater the potential # of clients". What you will very likely discover in practice is that there is a "sweet spot" in pricing such that any price above or below you'll see a drop off in members. In other words - any price LESS THAN or GREATER THAN your "sweet spot" price will result in FEWER members. This is one of those "non-intuitive" components you'll run into as an entrepreneur. 2. If you choose to price based on "competition" you are all but announcing that you are a commodity. Once again I'd suggest that this is a poor strategy. Instead consider your USP (or if you haven't yet done so...create one). Once you are properly differentiated YOU control and set pricing based on the VALUE you provide to the marketplace that they can't get anywhere else (i.e. Ferrari and Harley Davidson and Starbucks, etc). 3. Even with a solid strategy, a strong USP, a great product and a well-thought-out business model - you will likely still need to do some market testing (i.e. A/B testing) to find that "sweet spot" price I mentioned earlier. (I have yet to personally see anyone hit the mark right out of the gate.) 4. The last piece of info you provided - regarding monthly vs discounted annual membership pricing - would be a part of your OFFER. This is NOT the same as a pricing strategy - which should ideally be developed FIRST (at least conceptually). This is not to say you couldn't launch with the offer, but I'd suggest you figure out pricing FIRST and then develop offers based upon your deep understanding of your market. For assistance with any / all of the components I mentioned - give me a call. And be prepared that (in my opinion) whomever you decide to enlist this is going to take several calls to work out unless you have much of the groundwork already figured out. I apologize for this assumption - but I'm basing it on the information you provided and with hopes that this response will be helpful to others. I wish you great success!

The answer really depends on many factors. You are correct that many SaaS companies valuation falls into the range of 3 to 9 times revenue. I would say that companies that have a very high net income % (25%+) would fall more to the range of 7x-9x and companies that are closer to breakeven or low single digit net income percentages would fall to on the lower range. Also you need think look at how your company will be viewed from a competitive perspective. If you dominate your market but many many new competitors are entering that may discount the overall valuation. But if you are increasing market share within new market with little or no competition the future looks brighter from a valuation / cash flow perspective due to lower overall cost per acquisition of new customers. Hope this help. Let me know if you need anymore help.

Hi, Your problem is one of corporate structure. You need to create an organization chart and define the different roles that exist in the business. You then need to fill in your names to each box. The different roles may have salaries or commissions attached, likewise, each partner is likely going to have their names appear in the 'board of directors' box but they could also exist as 'licensing partners' outside the structure if they're due revenues from previous work contributed. Give me a call if you want me to walk you through this process. Once done, each person will know what roles they play at any given time and what their compensation will be. Cheers Dave

Here is a link to a basic model - http://monetizepros.com/tools/template-library/subscription-revenue-model-spreadsheet/ Depending on the purpose of the model you could get much much more elaborate or simpler. This base model will help you to understand size of the prize. But if you want to develop an end to end profitability model (Revenue, Gross Margin, Selling & General Administrative Costs, Taxes) I would suggest working with financial analyst. You biggest drivers (inputs) on a SaaS model will be CAC (Customer Acquisition Cost, Average Selling Price / Monthly Plan Cost, Customer Churn(How many people cancel their plans month to month), & Cost to serve If you can nail down them with solid backup data on your assumption that will make thing a lot simpler. Let me know if you need any help. I spent 7 years at a Fortune 100 company as a Sr. Financial Analyst.