turash/concept/monetisation/pricing-strategy.md

Pricing Strategy

Core Philosophy: Value-Based Tiering

Turash pricing reflects delivered value, not incurred costs. Each tier targets a specific customer segment with progressively increasing value propositions and willingness to pay.

Fundamental Principle: Price = Value Delivered. Platform must demonstrate 5-20x ROI (€5k-50k savings annually) to justify pricing as strategic investment rather than operational expense.

Pricing Anchors & Value Benchmarks

Value Reference Points

• Basic Tier: Priced relative to monthly resource procurement costs (€2-5k/month) → €35/month = 0.7-1.75% of procurement budget
• Business Tier: Priced relative to operations/procurement budget (€10-50k/month) → €120/month = 0.24-1.2% of operational budget
• Enterprise Tier: Priced relative to digital transformation investment (€50-500k/year) → €400/month = 0.8-10% of transformation investment

ROI Requirements

Tier-Specific ROI Targets:

• Basic: 7-17x ROI (3-6 month payback, accounting for industrial complexity)
• Business: 8-14x ROI (10 month payback, including service marketplace value)
• Enterprise: 6-15x ROI (9 month payback, including transformation value)

Subscription Tier Structure

Free Tier: Network Effects Driver

Positioning: "Explore the Platform, Build the Network"

Strategic Purpose:

• Drive organic growth through network effects
• 70% of total platform users
• 15-20% conversion to paid tiers within 6 months
• €0 CAC through word-of-mouth and municipal promotion

Feature Set:

• Local resource flows and business directory access
• Basic match suggestions (1-2/month limit)
• Service provider browsing
• Community forum and knowledge base
• Limited resource flow entry

Conversion Triggers:

• Usage limits create scarcity ("You've used 1/2 matches this month")
• ROI previews ("Upgrade to see €18k savings potential")
• Time-limited offers ("First month free" for Basic tier)
• Social proof ("Join 350+ businesses finding savings")

Success Metrics:

• Volume: 70% of platform users
• Conversion: 15-20% to paid within 6 months
• Time to convert: 3-4 months average
• Network value: Critical mass for paid user matches

Basic Tier: €35/facility/month

Positioning: "Find Cost Savings, Start Small"

Target Customers:

• Resource managers at manufacturing SMEs (€2-50M revenue)
• Single-site operations
• Cost-conscious early adopters testing platform value

Core Features:

• Unlimited match suggestions
• Detailed economic calculations (ROI, payback, NPV)
• Match reports with technical specifications
• Platform-facilitated introductions (3/month included)
• Basic reporting and email notifications
• Legal template access

Value Proposition:

• Primary: €5k-25k annual savings through resource sharing
• Secondary: 15-30% waste disposal cost reduction
• Tertiary: ESG compliance reporting capabilities

Pricing Rationale:

• Monthly Cost: €35-49/month = €420-588/year
• Expected Savings: €3k-15k/year (7-17x ROI)
• Payback Period: 3-6 months (industrial decision cycles)
• Positioning: Low enough for budget approval, high enough for serious users

Economic Metrics:

• LTV: €900-1,500 (24-36 months retention)
• Churn Rate: <30% annually (higher than pure SaaS due to industrial complexity)
• Upgrade Rate: 12% to Business tier within 12 months

Business Tier: €120/facility/month

Positioning: "Complete Resource Optimization + Business Development"

Target Customers:

• Operations directors at growing SMEs (€10-100M revenue)
• Procurement managers optimizing supplier networks
• Multi-site facilities
• Sustainability-focused businesses

Expanded Features:

• Unlimited facilitated introductions
• Service marketplace full access
• Facilitator marketplace (human expertise on demand)
• Advanced analytics (predictive matching, scenario analysis)
• API access and custom reporting
• Multi-resource matching (heat + water + waste + materials)
• Priority match notifications
• ESG compliance reporting (automated)
• Group buying coordination tools

Pricing Resilience Features:

• Resource price monitoring and alerts
• Scenario planning for commodity price changes
• Predictive analytics for demand/supply disruptions
• Ongoing optimization recommendations

Value Proposition:

• Primary: Complete resource optimization + business development
• Secondary: Access to facilitator expertise for complex exchanges
• Tertiary: Advanced analytics for strategic decision-making
• Resilience: Ongoing optimization regardless of commodity price fluctuations

Pricing Rationale:

• Monthly Cost: €120-180/month = €1,440-2,160/year
• Expected Savings: €15k-50k/year (8-14x ROI)
• Additional Value: Facilitator support and multi-resource matching

Economic Metrics:

• LTV: €4,000-6,000 (33-40 months retention)
• Churn Rate: <25% annually
• Upgrade Rate: 8% to Enterprise tier within 24 months
• Ongoing Value: 15-25% sustained cost reduction

Enterprise Tier: €400/facility/month

Positioning: "Full Digital Transformation of Resource Management"

Target Customers:

• Large industrial facilities (€50M+ revenue)
• Multi-site corporations
• Industrial parks requiring centralized optimization
• Energy-intensive industries (chemicals, metals, cement)

Comprehensive Features:

• All Business tier features
• White-label platform branding
• Custom integrations (ERP, SCADA, IoT platforms)
• Dedicated account management and priority support (SLA: 4-hour response)
• Multi-site dashboard (single view across facilities)
• Custom API development
• On-premise/Sovereign Cloud deployment (€30-80k/year minimum)
• Security certifications (ISO 27001, SOC 2, TISAX, NIS2)
• Business continuity (RTO <4 hours, RPO <1 hour)
• DPA compliance and EU data residency guarantee

Procurement-Ready Features:

• Annual/per-site/per-user licensing for public tenders
• "Run Under Host" trust mode for municipal operation
• Custom optimization models and dedicated analysts
• Advanced monitoring and custom reporting

Value Proposition:

• Primary: Full digital transformation of resource management
• Secondary: Strategic competitive advantage through circular economy leadership
• Tertiary: Compliance and risk mitigation at scale

Pricing Rationale:

• Monthly Cost: €400-600/month = €4,800-7,200/year
• Expected Savings: €30k-100k/year (6-15x ROI)
• Strategic Value: Digital transformation + competitive positioning

Economic Metrics:

• LTV: €20,000-30,000 (50-60 months retention)
• Churn Rate: <15% annually (annual contracts, switching costs)
• Multi-site Expansion: 25% add facilities within 12 months

Pricing Optimization Strategies

Dynamic Pricing Elements

A/B Testing Framework:

• Test €45 vs. €50/month for Basic tier (price elasticity measurement)
• Annual discount optimization (10-15% for prepayment)
• Volume discounts for multi-site customers (20% for 5+ facilities)

Value-Based Adjustments:

• Progressive disclosure of premium features
• Usage-based triggers for upgrades
• Time-limited promotions tied to demonstrated value

Churn Prevention Pricing

Retention Pricing Tactics:

• Annual contracts reduce churn by 50%
• Success milestone celebrations
• Proactive engagement before contract expiration
• Win-back campaigns with discounted pricing

Geographic Pricing Adaptation

Market-Specific Adjustments:

• Eastern EU: 20% discount for market development
• Public sector: Procurement-compliant annual licensing
• Utility partnerships: Revenue share arrangements

Competitive Pricing Context

Direct Competitors

• SymbioSyS (Spain): Government-subsidized, research-funded (free/low-cost)
• SWAN Platform (Balkans): Regional focus, limited scale
• Turash Advantage: Commercial model enables sustainable scaling and innovation

Indirect Competitors

• ERP Modules: €500-2,000/month (SAP, Oracle) - Turash positioned as complementary
• Sustainability Platforms: €5k-50k/year (EcoVadis, CDP) - Turash adds operational savings
• Marketplace Platforms: 10-20% commission (Upwork, Fiverr) - Turash leverages specialized industrial value

Pricing Justification

• Value-Based: 10-100x ROI vs. generic marketplace commissions
• Specialized: Industrial expertise justifies premium vs. generic platforms
• Outcome-Aligned: Transaction fees only on successful value delivery

Industrial Europe 2025 Pricing Adjustments

Zone-Based Pricing Shift

From Facility to Zone Pricing:

• Zone License: €500-1,000/year for industrial zones/parks
• Facility Access: €25-50/facility/month within licensed zones
• Utility Partnership: Utilities pay zone license, enable cheap access

Strategic Rationale:

• Industrial symbiosis works at cluster level (Kalundborg model)
• Zone licensing reduces CAC through utility channels
• Scales value capture with network density

Grant-Mode SKU

"Turash for Funded Pilots": €50k-100k one-time setup fee + annual license

Target Programs:

• INTERREG industrial symbiosis programs
• Horizon Europe circular economy calls
• National environmental ministry pilots
• Regional development fund projects

Value Proposition:

• Pre-configured for grant requirements
• Grant application support and templates
• Success metrics aligned with EU KPIs

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Pricing strategy designed for industrial complexity: high value, long sales cycles, and zone-based value creation requiring patient, relationship-driven approach.