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The Complete Guide to SaaS Pricing Strategy

Tom Tunguz

Most startups play defense when discussing pricing with customers. They use pricing as an offensive tool to reinforce their product’s value and underscore the company’s core marketing message. For many founding teams, pricing is one of the most difficult and complex decisions for the business.

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How to Leverage Pricing and Packaging to Drive Growth, Revenue, and Profit with Miro, Loom, OpenAI, and Splunk 

SaaStr

Pricing is more than just a number on a contract — when used thoughtfully, it can become a strategic tool for your SaaS product that can drive product adoption, customer satisfaction, and business growth. ” Pricing is also more than just the bottom-line price level. ” So, How Should You Price?

Payments 284
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Dear SaaStr: When Does It Make Sense to Price Low in the Market?

SaaStr

Dear SaaStr: When and how should SaaS startups offer reduced pricing vs the competition? For most SaaS apps, you want to at least start with just right, Goldilocks pricing: #1. Too high a price, and you start to add friction to the sales process. The answer is simple: mark up your pricing equal to the average discount.

Pricing 242
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7 Influencer Marketing Tools For Brands and Creators

Buffer Resources

  Standout feature for brands: Heepsy provides advanced search filters that allow users to narrow down influencer options based on various criteria such as location, follower count, engagement rates, niche, and more. Pricing: Free plan available; paid plans start from $89/mo with a free trial.

Payments 111
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Dear SaaStr: When Should a SaaS Company Allow Month-to-Month Contracts vs. Requiring Annual?

SaaStr

At least until you have a dominant brand, remove friction from sales. And that includes pricing. Once you have a brand that customers trust, more will prepay annually. One caveat: if your product requires significant onboarding and business process change, monthly pricing sometimes just doesn’t work.

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The 3 Types of Day 1 Pricing: Low End of Normal. Identical. And Anchor High.

SaaStr

For most of us, as we build up our confidence, the best initial pricing strategy to start is the Low End of Normal. There is no commodity pricing in SaaS. Price at 80% of that, to start. If that looks too low, raise the price a smidge. Other strategies include: Identical Pricing. If you are — maybe price the same.

Pricing 332
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Dear SaaStr: Do I Really Need a Top Brand VC?

SaaStr

If you raise money from top or even top-ish brand VCs at a reasonable valuation, you usually get at least 3 benefits: Top Partners at Top VC Firms are Usually Good for a Second Check if you are doing OK / decent but not great yet. Note this really only holds for seed funds with a strong brand. Social proof overall. It just makes sense.

Branding 293