How do you best calculate a price for a new product? | SaaStr

And remember, unless you are a true commodity, “cheaper” usually isn’t a pricing strategy in software. Brands matter. Trust matters when you are running your entire business on a piece of software. 90% of customers don’t want the cheapest solution — they want the best solution. Yes, some products like Twilio, Sendgrid, AWS, etc. do have a fair amount of direct price sensitivity. But even there, the value they provide and their brands allow them to charge more than the “commodity” pricing.

I can tell you as an ex-VP at a Fortune 500 company … enterprise products with similar enterprise value in the end have similar enterprise pricing, all-in.

Read complete article here:

How do you best calculate a price for a new product? – SaaStr.