Pricing VSP. Different models are possible, for example time based subscription: For the end user, the elderly, the service could be offered on a monthly subscription base. This way, the investment is limited, and the subscription offers a constant source of revenues. Relatives may also be willing to contribute, since the system takes away part of their worries. Formal caregivers, such as care homes, could be expected to contribute because of time savings offered by the system. Insurance companies may be interested in offering this service to their clients, since the use of these technologies will reduce the cost of elderly care. In this case the product will not be sold per license, but in batches. The software will be sold on the basis of annual subscriptions, and the price will depend on the number of licenses: the more licenses, the lower the price per license. A first inventory shows that people think it is fair that multiple parties contribute, for example both the elderly and insurance companies, but also relatives and/or caregivers. The time frame of the subscription needs to be decided on, this can be monthly or yearly, for example. Another option is a one-time perpetual license. The advantage is that on a short term the revenues can be higher, but there is no sustainable income for the commercialising company (a subscription offers a steadier source of income, and makes it more affordable for the end-user in case they have to purchase it themselves). In addition, there are other business models, like for example an advertisement model which allows free use of the software if the user accepts commercials. In this case we can propose two versions, one with limited services offered as a free service and a premium paid version with full services, or even a subscription based on actual usage and/or subscribed services instead of time period. For the first release we will use the subscription model as a starting point, with a monthly fee of €10 (hardware has to be purchased separately). During the interviews with elderly after the pilots, the ones who mentioned they would be interested using the VSP, indicated this would be a reasonable price level. Three MRPS residents mentioned that they would pay for having the Miraculous-Life solution at home, provided that the system works correctly. One of those participants also mentioned that he would not pay more than 100 Swiss francs per month for having the system. At ORBIS, respondent mentioned a monthly fee of ...
Pricing VSP. Different models are possible, for example time based subscription: For the end user, the elderly, the service could be offered on a monthly subscription base. This way, the investment is limited, and the subscription offers a constant source of revenues. Willingness to pay and the amount people are willing to pay is a subject for further research. Relatives may also be willing to contribute, since the system takes away part of their worries. Formal caregivers, such as care homes, could be expected to contribute because of time savings offered by the system. Insurance companies may be interested in offering this service to their clients, since the use of these technologies will reduce the cost of elderly care. In this case the product will not be sold per license, but in batches. The software will be sold on the basis of annual subscriptions, and the price will depend on the number of licenses: the more licenses, the lower the price per license. A first inventory shows that people think it is fair that multiple parties contribute, for example both the elderly and insurance companies, but also relatives and/or caregivers. The time frame of the subscription needs to be decided on, this can be monthly or yearly, for example. Another option is a one-time perpetual license. The advantage is that on a short term the revenues can be higher, but there is no sustainable income for the commercialising company (a subscription offers a steadier source of income, and makes it more affordable for the end-user in case they have to purchase it themselves). In addition, there are other business models, like for example an advertisement model which allows free use of the software if the user accepts commercials. In this case we can propose two versions, one with limited services offered as a free service and a premium paid version with full services, or even a subscription based on actual usage and/or subscribed services instead of time period. Exact price levels have to be defined during the course of the project, while it also has to be considered whether to differentiate pricing per segment. It is possible that different parties finance a system, for example one pays for the hardware, and the other for the license subscription. This will be the starting point for setting up a revenue model. Insurance systems and policies vary a lot between European countries, which might force us to introduce different business models in different countries. In the first stage, t...
