Clear Pricing Structures
No hidden fees or dark-pattern upselling. Provide transparent pricing structures, ensuring that educational institutions understand the costs associated with your products and services. Align your pricing with the success of public education.
Why: By providing transparent pricing structures, EdTech companies enable educational institutions to make informed decisions and allocate their resources effectively. Furthermore, aligning pricing with the success of public education showcases a commitment to the broader goals of the education sector. EdTech companies should consider the impact of their pricing on accessibility and affordability for educational institutions, especially those serving underserved communities. By offering fair and reasonable pricing, EdTech companies can contribute to reducing educational disparities and bridging the opportunity gap. What will be invoiced and why is understandability explained before the contract signing. During the services of the contract the costs do not change due to non measurable metrics.
Avoiding hidden fees and dark-pattern upselling is crucial to maintaining trust and credibility. Hidden fees can create a negative experience for educational institutions, leading to dissatisfaction and a breakdown of trust. Dark-pattern upselling, which involves using manipulative tactics to pressure customers into purchasing additional features or services, undermines the ethical standards of the EdTech industry. By adhering to this principle, EdTech companies can establish long-term relationships with educational institutions based on trust, fairness, and mutual benefit.
Maturity levels
None: Providing an additional not asked for functionality for free, and after using it for a time x or usages level y an invoice is sent.
Junior: At the start you are discovering what is the correct price, this should reflect your costs. You can test and discuss the value of your proposition with our launching customers.
Medior: You have a standardised pricing model and you can explain the rationale behind the build up. You can explain what happens to prices when the volume goes up, or other metrics in your contract who determine the price.
Senior: Your pricing is transparent and clear to all your customers and justifiability distributed among your customer portfolio
Counterexamples
Practical counter-examples to help build understanding
Hidden Fees: Some EdTech companies may introduce hidden fees that are not clearly disclosed upfront. These fees could be added for specific features, additional support, or access to certain resources. Educational institutions may only become aware of these hidden fees after signing up for the service, leading to unexpected expenses.
Non-Transparent Tiered Pricing: Certain EdTech companies offer tiered pricing plans but fail to provide clear explanations of the features and benefits associated with each tier. This lack of transparency can make it difficult for educational institutions to understand what they are paying for and whether upgrading to a higher tier is worthwhile.
Unclear Renewal Policies: EdTech companies may employ renewal policies that are not adequately communicated to educational institutions. This can result in automatic renewals without proper notice or explanation of the renewal terms, leading to surprise charges or difficulties in canceling subscriptions.
Variable Pricing Based on Non-Measurable Metrics: Some EdTech companies may base their pricing on metrics that are not easily measurable or transparently defined. This ambiguity can make it challenging for educational institutions to anticipate costs accurately or compare pricing options among different vendors.
Dark-pattern upselling:
Default Pre-Selection: During the signup or purchasing process. Customers may overlook these pre-selected options and unknowingly end up with a higher-priced product or service than they intended to purchase.
Misleading Free Trials: Do not offer free trials that require customers to enter payment information upfront. They may fail to clearly communicate that the trial will automatically transition into a paid subscription unless actively cancelled.
Hidden Costs for Essential Features: Customers may discover later that the essential features they expected to be included in the base package require additional payments.
Forced Bundling: EdTech companies may bundle certain features or services together, making it difficult for customers to purchase only the components they need.
Price Obfuscation: EdTech companies may present pricing information in a confusing or complex manner, making it challenging for customers to understand the true cost of the product or service. This lack of transparency can lead to unexpected charges or difficulties in comparing pricing options among different vendors.