What to do when your SaaS pricing is WRONG! | ChartMogul

There’s nothing worse than changing the price of your SaaS product after your audience is used to your current digits. Oh wait. Yes there is: Failure. Bankruptcy. Going home for Thanksgiving dinner and explaining to your family why you moved back into your parents’ garage.

The stakes are high, and if you didn’t guess right the first time on your pricing, you could be driving away customers or scrambling to make a profit. It’s okay, really. Finding the right price point is challenging for all of us.

Let’s look at a few of the ways you may have gotten off track from the beginning.

“What’s a price like you doing on a product like this?”

1. You undervalued your product

I can’t tell you how many times I’ve heard this one. Think of it this way: If you can offer more value than your competitors and offer a slightly lower price point – you win! That “lower” price point doesn’t need to be the rock bottom. But, if you offer much more than your competitors, then you have earned the right to charge more.

Another factor that often influences our pricing decisions is if producing the product seemed “easy” to create, it’s tempting to price low because you don’t think anything easy could possibly be worth more. Here’s a more productive (and lucrative) perspective: How much value does your product offer the end user? If it took you 5 minutes to solve someone’s biggest problem in life, then good for you! Charge them top dollar and they’ll be delighted to pay.

2. Not so much a strategy as an educated guess…

Often, we try to find competitors and base our prices off of theirs. This is not a terrible way to start, but keep in mind that you don’t know all the facts of that price point. What is their overhead? What does their business model look like? Is that price point even working for them? But more importantly, if you just copy your competitor’s pricing, you’ve lost an opportunity to differentiate yourself.

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What to do when your SaaS pricing is WRONG! | ChartMogul.