Marketing pricing advantages

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3 min read

Outseta has a pretty massive advantage when around pricing, but it's one that's tough to communicate. In short, we built our own subscription management and invoicing tools back in 2016—before Stripe's own subscription management and invoicing tools even existed (it's part of the reason we started the company). As a result, Outseta does not use "Stripe Billing" under the hood—which almost all of our competitors do.

Stripe Billing costs an additional .8% per transaction, so our customers don't pay these fees but customers of our competitors do. But the problem is this—we charge our own transaction fees, in addition to Stripe's transaction fees. And our competitors advertise that they charge their own transaction fees, in addition to "Stripe Fees."

Those Stripe Fees are higher than ours! But almost no one realizes that.

For this experiment I updated our pricing page to include a video where I explain this difference in our pricing. I also updated this page where I explain this difference in detail. This one is tough, because it's not easy to explain quickly and can feel kind of nit-picky. But it's also something users deserve to know—every customer that's migrated to Outseta has reported saving between 1% and 4% per transaction on payment processing fees. For one customer that was processing about $500k in payments annually, he saved enough by switching to Outseta from Memberstack that he paid his Outseta subscription fees for the next 3 years. Here's the video I added to the pricing page as well.