How to Set a Price for Your SaaS Product?
Morgan Kung
8 replies
Hey hunters,
Recently I have studied 3 common pricing strategies and 6 pricing models. After comparing their advantages and disadvantages, I am still unsure of how to start.
Therefore, I’m curious about how you make choices when selecting pricing strategies and models?
PS. If you would like to see my study summary on the pricing， please check it out at: https://gemoo.com/blog/set-prices-for-your-saas-product.htm
Replies
Aviel Kogan@aviel_kogan
As for the beginning I'd not set a price lower than what I think my product's value worths.
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@aviel_kogan Yes, it's important to have confidence in the value of our own product. But what if purchase volume is not as expected, will you choose to reduce the price or just optimize the product to drive users to buy?
@inc_gemoo Reducing the price might also be an option, but before doing that I would try to figure out why didn't we get the expected volume? How can I get more traffic?
Maybe the problem isn't with the pricing itself, maybe it's about the way that your potential clients are going through until they reach the traffic page? Maybe there is an issue there, that makes them even not to look for the pricing. Hope I was clear :)
1) If you start higher than expected, it might create some frictions for the users to buy, but you will be able to lower the prices easily making everybody happy.
2) If you start lower, might have more customers, but then it's harder to rise the price.
I've tried 1) start a bit higher, and I actually lowered it, should have followed my initial gut: give the appropriate price you yourself would pay if you were a customer of your product.
It's hard job finding the right value perceived / price balance, I scratched my head several hours for that and it will still evolve haha. So don't overthink it, what you want at first is having customers = good value perceived for a decent price, but not too cheap or it could feel weird 🙈 (I feel like giving a "no advice" advice ahah)