Pricing SaaS products
Pricing your SaaS product is tricky but needs to be a priority. Matt Johnson, Senior Partner at Simon-Kucher Partners (global pricing strategy firm that has worked on 3,200 pricing projects in last 2 years) suggests price before you build a product. See what people will pay for the product and then build that. Have the conversation earlier about what people are willing to pay in MVP stage so people don’t feel like you are selling them something and can add input in what you build. Ask directly about price like what would be a fair price for this product, or an expensive price, cheap price and prohibitively expensive price and price accordingly. You should understand that one price doesn’t fit all so segment by users and make the options simple and clear on your website of what users get for each price.
To hear more from the experts on pricing check out:
- Kissmetrics B2B Scalable Sales pricing where they recommend getting rid of free plans, shortening trial period, offering prepaid annual contracts and more.
- SaaStr three tips for pricing SaaS products in the early days by using your sales process and cycle, anchoring high and asking the right questions to prospects to inform prices.
