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How to determine the right pricing strategy for your SaaS product?

Arzu Özkan
3 replies
How to determine the right pricing strategy for your SaaS product and how to adjust pricing over time as your product and customer base evolve. 🤔

Replies

Jan Kuzel
I recommend getting on GrowthMentor and talk to some people there who specialize in pricing strategy. With SaaS pricing, there are like a dozen important factors, which all depend on your specific product and your company's goals. It's highly individual, and there is no universal advice that could be offered. If one tried to explain how to construct the pricing, considering all the factors, it would amount to a book, so unfortunately, it can't be covered with one comment. https://app.growthmentor.com/sea... Or just read a couple of books about it and google for a long time. There is no better alternative. If you google it, you're going to naturally find mostly resources by Profitwell, OpenView, Tomas Tunguz, Kyle Poyar, and such. Making a guide that would fit inside one blog post is too hard too, Profitwell has these free ebooks and can't even fit it into one. I would probably start with https://www.priceintelligently.c... ... although half of their materials are always just about how pricing is important because they try to sell you their consulting services. Still, there's incredible value in their materials considering it's free.
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Fabian Maume
Warmup Inbox
Warmup Inbox
That is a realy complex topic. I would recommend you to check out profitwell's blog. They have good content on the topic https://www.profitwell.com/recur...
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Hemant Warier
Notesally 2.0
Notesally 2.0
I've had the opportunity to work with a wide range of companies in determining the best pricing strategy for their products. One of the most important things to keep in mind when developing a pricing strategy is to understand your customers and their needs. One way to do this is through customer segmentation. By dividing your customer base into different segments, you can tailor your pricing to meet the specific needs of each group. For example, if you have a freemium model, you may want to offer more features to your enterprise customers than to your small business customers. Another key factor to consider is your competition. It's important to understand what other companies in your space are charging and how your product compares. This can help you set a price that is competitive, but still allows for growth and profitability. In addition to these key factors, it's also important to consider the value that your product provides. The key is to price your product at a level that reflects the value it provides to the customer. This may require a bit of experimentation and testing, but it's an essential part of determining the right pricing strategy. Finally, it's important to be prepared to adjust your pricing over time. As your product and your customer base evolve, so too should your pricing strategy. In my experience, determining the right pricing strategy for a SaaS product is not a one-time event but rather a continuous process. It's all about understanding your customers, your competition, and the value that your product provides, and making adjustments as necessary. If you want to learn more about pricing strategies for your SaaS product, don't hesitate to reach out to me on LinkedIn. I'd be happy to share my expertise and help you navigate this process.
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