Important Pricing Tips For SaaS Product

Are you ready to improve your pricing after reading this important pricing tips for SaaS Product?

Here you will find the important pricing tips for SaaS product, As Pricing is a SaaS company’s most efficient profit lever, but also one of the easiest to screw up. Nailing your pricing strategy requires more than just picking the optimal price and forgetting about it.It needs to be continuously monitored to ensure you’re effectively lending, expanding and retaining your customer base. And it needs to consider both the rational and irrational sides of how people make purchase decisions.

1. Run multivariate tests with several different pricing options and see which has the best results.

2. Avoid being the cheapest offer in your industry. You’ll never find sufficient margin to support strong marketing, excellent customer service, and overall growth. Instead, start pricing your product with an incredibly healthy margin and if need be, discount later to target a more price sensitive audience. Remember, it is generally easier to lower prices than it is to increase them.

3. Doing prospective customer interviews is a great way for a new entrepreneur to figure out how much to price his or her SaaS product. This allows you to discover how much a customer is willing to pay for your product, which can then determine what your set price should be. Customer interviews also allow entrepreneurs to understand the factors that influence purchase so you can best position your offerings.

4. Offer multiple versions of your SaaS product. , It’s unlikely that your SaaS product is going to fit into a “one size fits all” business model — makes it attractive to businesses both small and large.

5. Price it, and then change it. This way you’ll learn quickly, but you won’t upset old customers.

7. Check the competition and try out their service before pricing your product if you can. Make sure your price is not the only competitive aspect of your product.

8. Always show the price: The most important thing. And seriously – not as obvious as it sounds. Not everyone remembers about that.

9. Price and currency: I want to know what the price is and in what currency. If I need to pay in some foreign currency – I need to know that. If I have a chance to pay in some other currency (e.g. in EUR, not USD), I want to know that.

10. What’s in the package?
Most of the SaaS businesses are selling their services in packages. Write down everything that’s included in each of your packages and publish this information here.

11. Period of time
I need to pay $20. Sure, fine. But for what? For a month, a day, a year? Don’t forget to inform what the price is for. If that’s per month (in most SaaS services) – inform your customers about that.

12. Bigger plans
In most cases… if I want to charge users for using my service for some short period of time (e.g. for a month), there is a chance that I will offer the same product for a longer period of time with a discount.

13. Contract or no-contract plan
Some of the SaaS businesses want to charge some amount for a period of time (e.g. for a month), but only if you sign a contract for some longer period of time (e.g. a year). So even if you are charged on monthly basis, you will need to pay month by month, for a whole year.

14. Trial period
Have you something like a trial in your business? When you offer unlimited access to your service for some short period of time? Tell about that. It’s worth knowing how long I can use your service for free before I need to pay for it.

15. What type of payment methods do you accept?
If you’re selling around the globe – it’s a good idea to offer more than just Visa or MasterCard cards.

16. Refund policy
No matter if you offer 30-day money-back guarantee or no refunds at all. Tell your users how it works in your SaaS. Or at least link to your Terms of Service page, where users can find more information about that.

17. Recommend a plan
Inform your customers which plan is best for whom. Which one is the most popular one (you can highlight this plan)?

18. Calculate Fees
If you want to offer a service, where price is based on the usage… it’s advisable to offer some kind of automatic calculation tool on your site.


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