5 Steps to SaaS Pricing

You have created a killer product and are about ready to launch it to market. Your first beta customers have been validating that it solves a real business problem. Now, you’re ready to get your sales and marketing in gear to fill the pipeline of leads and prospects. If you’ve ever launched a new b2b product to market, one of the most difficult things to do as part of your go-to-market plan is pricing. You have so many moving factors to consider to get it right.

In my experience, I’ve seen a lot of pricing that is “finger in the air”, which to some extent is always the case, since you’re trying to determine what the market is willing to pay. However, pricing has to be based on a well thought out process. Otherwise, you’ll end up in situations where you leave money on the table. You price too high and no one wants your product, or you price too low, and you miss out on maximizing revenue.

There are a number of steps you can take to ensure that you’re thinking of pricing in the right way.

1. Start with your target market

By the time you’re ready to get your sales in motion, you’ve done the right testing to have a hypothesis on who your ideal customers are. Start small. What industries are your current customers in? What regions are their businesses in? What is the size of the company that would get value…