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What pricing models did you choose for your SaaS?
Monthly subscription seems to be the most popular option for SaaS pricing nowadays.
Although it has become the most obvious one, other models exist (flat rate, usage based, per user, per feature, etc.) and may represent a more suitable strategy.
Curious to know how you approached that matter for your own SaaS. Please share your thoughts!
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Nikhil Kotcharlakota
Hi @sebastien_chaine It really depends on your product and how your customers actually gain value.
Monthly subscriptions are fine for majority of B2C products, but there too you have an option of selecting the price model that works best for you.
If there really is no value for your customers by adding more people, then go flat rate. Instead of going per user. You can tier your packages by limiting the users in each Plan.
Anyway, there are a lot of ways to solve this. So even though I hate saying this, it really depends on the product/service.
If you want to discuss further, happy to chat offline.
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We have both monthly and annual subscriptions available. But the logic is definitely a cost plus approach. Customer Lifetime Value would be where we start making some real profit so keeping customers engaged is key.
@sebastien_chaine Yes that's right Sébastien, thanks for noticing. For us the additional consideration was deciding pricing between a flat monthly fee, cost per use, or a bulk credit purchase. There are plenty of different ideas around it.
We’re still working on that, because we think it’s best to work closely with our early adopters to understand the different vibes that different models would create.
It’s a sensitive topic and if you get it wrong, it could totally ruin your product!
What would you suggest for Touring as a pricing model? A few users already gave some ideas in the comments on the launch page of today!
@sebastien_chaine hey thanks for the answer! Yes, I agree with you.
When we brainstormed about Touring’s pricing we ended up with the same reasoning, and then thought we might come up with some “travel packs” like: 1 day, 3 days, 1 week pass and so on.
We’ll be experimenting this with our early adopters, it’s going to be exciting 😍
We are currently annual only, mainly because our product is a strategy setting and planning programme for startups, small businesses and sidehustlers. We went annual because we want our customers to commit to working with us for a year to build their business up using the strategy and plans they create going through our goal getter programme. That’s our current logic but it might change - working out the best pricing model is tough especially with a new product. We are a lot cheaper than other similar programmes, so annual still feels like a bargain but we will have to wait and see.
