5 Considerations That Influenced Our SaaS Pricing (Advice That You Could Profit) --
You know you need SaaS pricing recommendations at the point you ask "... but what is the right price to charge?"
Do not worry, every startup looks for SaaS pricing guidance in the weeks leading up to their product launch. There are many options both good and bad however, what's the best option for your business or product the most important thing, your clients?
Since the beginning of time, my founders as well as I have collaborated in a wide variety of companies to help them price their services. We feel we've done pretty good job at pricing, and we're happy to provide SaaS pricing tips that have anchored our approach to pricing.
1. Keep Simple
In particular, at the early stages.
In the weeks leading up to your launch, you'll have lots to work out. When you're creating a brand distinct segment or a market, there's lots of education to complete.
Price-related confusion can create friction between you and prospects.
If you feel like ordering a gourmet burger, it's too complicated.
Prospects need to understand what they are paying for so that they can easily compare that price to the problem that it will solve. If they aren't aware of what it will cost them, it'll be hard for them to make a purchase choice, and then plan your closing date.
2 - Don't Give It away
If you have an item, you've determined that it's worth something. If you're not convinced by the product, people who are interested won't.
There's really nothing more to add.
3 - Don't Think About It Too Much
Prices will shift as time passes and will be revised when you test the users you serve. Pricing today may change as you learn about your marketplace and figure out product-market fit.
Make sure you are honest about where are in the lifecycle of your business - you're not Salesforce therefore your pricing shouldn't be exactly like that. Pricing needs to be simple and the staff needs to comprehend it, so that they are able to help you spot any shortcomings and propose fixes.
4. You can map your tiers to your Users
In order to do this correctly, you need to understand your customers. Really understand the way they interact with your product, the issue it addresses for them and how it can be integrated in with their daily lives.
This will be different depending on the user group Therefore, it is best to group these users in a group and pinpoint the most important features they require for their needs. When you are aware of the most important elements, you will be able to utilize those features to build distinct pricing tiers.
5 - Always Leave the door unlocked to custom
There are bound to be some exceptions. Try not to anticipate all of them up front, because you can't.
If you build that stage early. This allows your customers to come forward to different use situations that you've not thought of. By leaving the door open to these discussions, you'll be able to remain flexible and accessible within your user's minds.
There are many different ways to think about pricing. However, when you've worked through the process working with various companies across different sectors, we've discovered these five factors are the ones that continue to be applicable.
Wrapping Up Our SaaS Pricing Advice
It's important to keep it easy, particularly during the beginning Be sure you don't just offer your product for free. When you expand, a variety of options will be presented that will naturally lead to different pricing approaches. It's important not to overthink the pricing strategy you choose to use, and make sure that you understand your users.
Last but not least, keep the door open to custom pricing. Users may have access to situations that you don't recognize yourself. When you allow your potential customers to contact you and talk through their ideas, you might find a new market or an opportunity that isn't there, or an entirely new approach to pricing.
Custom pricing allows you to remain in touch with your customers and potential customers. That's the reason we created Interactive Quotes. To help B2B SaaS sales personnel get as close to their prospects while they're making their purchase decision as possible.
