The inevitable question all edtech companies have to answer sooner or later…How much
does it cost?
No one likes to talk money when it comes to education, because how do you put a price a
Or how do you ask a teacher, who is already underpaid, to reach into their own pocket to
buy a tool that makes a wide variety of promises.
We are hyper-aware of this reality and have not taken how we price Storillo lightly.
We don't have dreams of being Zuckerberg or Bezos, we just want to make enough money
to finally move out of our parents' houses!
So I felt it was important to explain how we decided on our current pricing model. And
also to let you know that we are always listening, and are open to your ideas for how we
could bring you more value.
Because that's what it's all about—providing you, the teacher and school, value.
And this was the best way we knew how.
The First Decision
Charge by student or by teacher?
Obviously, one would generate a lot more revenue than the other, but that doesn't mean it makes sense for us.
After talking to many schools and teachers, we decided to be priced by the teacher.
It just made sense.
While we work to help students, we realized early on that we are first a teacher's tool.
And we are also not blind to the reality that you're probably not doing group work every day.
We hope you integrate Storillo into your class as much as possible, but we know that it's not always possible with all your other requirements. So charging by student for a tool they're not using every single day didn't make much sense.
The Second Decision
Tiers by features or projects?
This was a MUCH harder decision…
Because you're either limiting what someone can do, or how much someone can do-neither are great options.
We knew we wanted to have a free tier so teachers could dip their toes into the Storillo waters risk free, but we debated as to how the tiers would be broken up—by features or by projects.
And we talked to educators and got different answers depending on who we talked to.
Personally, I always hated when that one feature you really need is left off the free tier to be the only incentive for upgrading. You feel like you're trapped…
And being an edtech company, most of the features we build will impact student learning, so we didn't want to put too many restrictions on the features so the teacher could use Storillo to its full potential.
But limiting the number of projects also has is drawbacks.
Basically instead of limiting how a student can learn, you're limiting how much. You're putting a cap on how much they can learn.
Doesn't sound much better…
But then we looked at it from a business perspective: once we build a feature, it doesn't really cost us more to make it available to you—if anything it costs more not too! Because then we need to build more on/off switches based on the account you have.
It doesn't feel right to charge you continuously for something that doesn't cost us continuously.
Our costs really come in the form of storage, and what's going to take up more strange?
So it just makes sense from a business perspective to charge you for what's costing us the most. And it's easier to create a "project bank," and have values for different activities than all those on/off switches.
It also allows us to have much better give-a-way's!
And again, we know you're not doing group work every single day, but when you do, you want as many features available to you as possible!
So, while we have somewhat of a hybrid, our tiers are first built around the number of projects and we have tried to make sure any feature differentiation is to add value to you, the teacher, and not take away from student learning.
The Third Decision
What should the price be?
This was also difficult. Like I said before, we knew we wanted a free tier, but what would be a fair price to pay for unlimited projects…
We’re trying to make group work one less headache, and hopefully lighten your workload a little so you won’t need to go pick up coffee on the way home to stay up all night and finish your grading.
So we figured that if you’re paying, you’re doing more than what you could on our Starter tier. So that would be at least 5 projects a month. With some back of the napkin math, we’re replacing like 5 cups of coffee, and since McDonalds has $1 any size coffee, we should probably start at $5 per month, or $60 a school year.
Does that make sense?
I know this was long, and nobody is probably reading anymore, but we at Storillo thought it was important to be as upfront as possible about where we are coming from and the road we took to get here.
And we hope you will join us on our road as we work to make group work easier for teaches and more educational for students.