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Transitioning Clients to Higher Hosting Costs9333

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VTLV private msg quote post Address this user
Let's face it. For those of us "Grandfathered In" to keep our previous pricing models, we know the clock is ticking on our rates going up. Pittman coughed up about a year with no guarantees and a terms of service deal that can change at any time.

Have you looked at your current costs of hosting and worked out any math to determine future hosting fees to charge your clients? If so, can you share? Calculators (preferably simple without having to index your whole Photography Business and costs)?

The best I can come up with on my 200 model account (currently 170 used / 30 empty), is that I am paying $5/yr to host each space. The new pricing would hike to the Business Plus plan at $7,200.

I've got 2 ways to look at the Business Plus
1) I am now paying $29/yr for each space
2) I am paying $35/yr to host my 200 spaces. (Anything over is gravy, but it is still a cost for something I currently didn't have plans to fill or pay for in the "immediate future).

I have one big client gobbling up about 100 spaces who pays hosting twice a year. With Business Plus pricing, I need to charge more than $30-$35/yr a space (in some cases $60-70 for larger models) to offset any chance of profiting off of hosting or at least make up for my time to calculate and bill out the invoices. Not to mention, some hosting fees can help keep alive hosting on Portfolio models.

My fear is the hosting costs will be more than they will be willing to pay and dump my service all together when prices hike. We need to put something together and address the new pricing has been announced. Unlike Matterport dropping a bomb, I would like to give them a heads up of what we could be looking at in the future for hosting. Also, update pricing on the web page for new clients.

Have you found or created any Cost of Doing Business or Offering a New Service Calculator to help determine a new hosting cost for your future?
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Queen_City_3D private msg quote post Address this user
@VTLV Great post.

I'm on the business plan and currently have approx 450 hosted models and have been paying for overages each month.

Every few months I go through my models to figure out which ones are okay to delete, but then every months we're adding several more.

I don't know what I'm missing with Matterport's limiting of public models... Paying $7,000 to process as many as you want, but then only being able to make 200 public... that might work for the insurance industry... but I don't get it for any other business model.

I'm so confused as to what Matterport is thinking right now.

Glad I can keep my grandfathered account for now. If they change that, I'll certainly reconsider use of Matterport altogether.
Post 2 IP   flag post
jellofan private msg quote post Address this user
Just for hosting the cheapest new plan is the Starter Plan, $9.99/month for 5 spaces ($2/space/month). Business Plus is $2.40/space/month ($599/month for 250 spaces).
Post 3 IP   flag post
PWIMAGING private msg quote post Address this user
So if you are at the "bottom or mid point" of that Up to 200 models - each model hosted becomes more expensive. Unless I'm missing something.

The "Grandfathered" statement is just that a "statement" until we get something in writing I assume that the other shoe will drop soon. I mean the announcement of new pricing on the day it goes into place still boggles me.
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VTLV private msg quote post Address this user
Quote:
Originally Posted by PWIMAGING
So if you are at the "bottom or mid point" of that Up to 200 models - each model hosted becomes more expensive.


When stepping over with 100+ scans into Business Plus, you will be paying about $35 a year on each model space that is currently left empty for a future client.

I see more billing issues arising when the cost to shoot and host a new model runs out its lifetime, say you offer to host it for 6 months or a year. Will the client pay to keep the hosting alive? Billing monthly is out the question, too time consuming with no commitment to the following month.

This now leads into our time and costs being taken away from shooting and advertising doing more book keeping. Could you imagine end of summer comes and you got 10 tours getting taken down. You're out about $280 for a few months "just for those spaces" dropping off because your clients didn't feel they needed to host the old models any longer. Add that to all your other empty model spaces costs.


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GETMYVR private msg quote post Address this user
Lets use Walmart as a case study for profit, and a friends uncle shared this with me. He got products onto the shelves at Walmart and is now retired in a nice enclave with a private golf course near Philly. Walmart uses a 1-2-5 methodology. $1 for a product manufactured is wholesaled to them for $2 and that is then retailed for $5. So if we are paying $35 a year to host a Showcase, lets consider Matterport as the manufacturer, and us as the wholesaler and retailer in one. We then should be asking for $175 per year, or just around $15 per month per showcase hosted. Thoughts?
Post 6 IP   flag post
Queen_City_3D private msg quote post Address this user
I have to shake my head at whoever came up with this pricing scheme:




Let's say you wanted to go with the Business Plus to allow for 250 Active models...

The cost is $7188/year.

Why not just go with 5 Professional Plus plans instead to host 250 Active models. Each plan would be $1316/year x 5 = $6580/year.

You would save $608... not to mention you could add the extra plans as you needed them (e.g. Business plan is 100 active models whereas with Business plus you jump up to 250 right away... let's say you had 125 models...get 3 Professional plus plans... Now you are up to 180 models... get 4 professional plus plans.... etc. Much cheaper than jumping up to 250 right away).

Doesn't seem well thought out in my opinion!
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VTLV private msg quote post Address this user
@GETMYVR - Thank you for sharing the Walmart model. This does open up the idea to raise prices in a manner that could pass down some empty model costs to the existing client and maybe some income again off of hosting. However, I think this hike will deter clients from paying for the higher hosting cost.

@Queen_City_3D - Quote:
Originally Posted by Queen_City_3D
The cost is $7188/year.

Why not just go with 5 Professional Plus plans instead to host 250 Active models. Each plan would be $1316/year x 5 = $6580/year.

You would save $608...


This is a great thought that I had overlooked saving $608 right off the bat simply by not jumping into Business Plus. And possibly a good chunk of the $1,316 while model space inventory is still under the next order.

We can now look at this price increase from $999 to about $5,264 to match the current 200 model/space. Still a huge price hike in a rare manner.

I bet we're all thinking; "Doesn't price per unit typically go down when you order more of a product?' (espceially when it's a product with the companies brand recognition and logo all over it).

Along with: Quote:
Originally Posted by Queen_City_3D
I have to shake my head at whoever came up with this pricing scheme:

And
Quote:
Originally Posted by Queen_City_3D
Doesn't seem well thought out in my opinion!


@DanSmigrod, I won't be able to join your chat with you and Matterpork folks tomorrow. But this topic clearly needs to be addressed if prices are truly going to hike in the near future.

Sure, we all know for right now we can keep our current deal and pay extra fees for additional downloads. In some cases, we are already doing that on last months price change when we do not get to apply one of our model credits that some people refer to as "free" from a plan we paid for with zero roll over.

We continue to get a shut down answer of we are safe for now. What we don't get is the reasoning for the price hike and do not believe the company understands that most of their clientele are photographers. Sure, I have a real estate license, but I am more of a photographer theses days than an RE Agent. There's no pricing plan targeting our ability to deliver a product to our clients. Only higher costs to the client until they jump ship and go with Matterport and still get priced out.

DO they not understand our cost of gas has hiked a dollar in the past 6 months? Do they not realize our costs with Adobe CC just doubled? How do they vision photographers and where do we typically fit in their there eyes when it comes to a pricing plan they think is ideal for a large chunk of their "Service Providers"?
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DanSmigrod private msg quote post Address this user
@VTLV

Thank you for your insight. Awesome!

Wish you could join us on WGAN-TV Live at 5: Town Hall: Matterport New Pricing on Thursday, (16 May 2019).

Quote:
Originally Posted by VTLV
What we don't get is the reasoning for the price hike and do not believe the company understands that most of their clientele are photographers.


Quote:
Originally Posted by VTLV
There's no pricing plan targeting our ability to deliver a product to our clients.
Quote:
Originally Posted by VTLV
How do they vision photographers and where do we typically fit in their there eyes when it comes to a pricing plan they think is ideal for a large chunk of their "Service Providers"?


If no one else asks a question about this, I plan to.

Best,

Dan
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