OnDemand WTP Pricing Research

SaaS Pricing Models & Strategies Demystified | baremetrics

Pricing can be one of the most overwhelming and puzzling parts of business.

SaaS businesses, in particular, have a unique challenge with pricing for a few reasons:

  1. There’s an almost infinite number of different ways to price a SaaS product.
  2. The cost to produce and maintain a SaaS product is generally unrelated to the value a customer receives, so pricing based on how much margin (profit) doesn’t make sense for the most part.
  3. The recurring nature of SaaS means that value is spread out and captured over time.
  4. Many SaaS products are packaged into different plans, essentially creating different versions of a product, which introduces multiple layers of complexity.

Whether you’re sitting down for the first time to figure out pricing for a new product, or revisiting pricing for the 10th time this year, the process can easily have you stumped.

The goal of this article is to walk you through, step-by-step, everything you need to know to optimize your pricing and clear your head of all the anxiety and stress that goes into it. Most of the articles/ebooks I’ve read are either super brief or extremely scattered. I want to create something that’s actually actionable to help you with pricing and packaging your products.

Read complete article here:

SaaS Pricing Models & Strategies Demystified – Baremetrics.

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