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HOW TO CHOOSE
PROFITABLE SAAS
PRICING MODEL?
An average startup spends only
6 HOURS
in lifetime to setup pricing model.
COMPONENTS OF YOUR
SAAS PRICING MODEL.
THERE ARE 3 CRUCIAL COMPONENTS OF A
PROFITABLE SAAS PRICING STRATEGY
THE BALANCE VALUE
YOU PROVIDE /
REVENUE YOU
RECEIVE.
PRICING NEED TO COVER
YOUR GROWTH GOALS.
PSYCHOLOGICAL TACTIC
TO CHOOSE THE MOST
INCOME-ORIENTED
PRICE.
VALUEREVENUE
ESSENTIAL TIPS TO CHOOSE
YOUR PRICING MODEL.
Demographic:
GENDER AGE LOCATION
DEFINE YOUR CUSTOMER
Professionally:
WORK YEARLY INCOME BUSINESS PAIN
CREATE CUSTOMERS COHORTS
MELINDA
FEMALE, 30 YEARS, AUSTIN
EARLY-STAGE STARTUP OWNER
REVENUE <1M$
THE LACK OF BUSINESS
PROCESSES
JONATHAN
MALE, 35 YEARS, SAN FRANCISCO
SERIA A STARTUP CTO
REVENUE <5M$
HARD TO SCALE TEAM
COLLECT DATA ABOUT CUSTOMERS
AT FIRST, FOCUS ON FEATURES.
DEFINE RELATIVE PREFERENCES.
SURVEY EXAMPLE
SURVEY RESULTS
AT SECOND, FOCUS ON PRICE.
DEFINE WILLINGNESS TO PAY.
The wrong question: The correct question:
WOULD YOU PAY
FOR THAT?
HOW MUCH YOU
READY TO SPENT TO
BUY IT
IMMEDIATELY?
GOOD SURVEYS LEAD
TO GOOD PRICING.
CHOOSE SAAS PRICING
MODEL WISELY.
IT'S EASIER TO SATISFY 100
PEOPLE AT THE MAXIMUM FEE,
THAN TRY TO SATISFY 1000
PEOPLE AT THE LESS FEE.
AN OVERVIEW OF PRICING MODELS:
FLAT RATE PRICING.
CUSTOMER SINGLE PRICE SERVICE
EASIER TO SELL;
EASIER TO COMMUNICATE.
NO FLEXIBILITY.
USAGE-BASED PRICING.
LESS BARRIERS TO USE. HARDER TO PREDICT
REVENUE.
CUSTOMER TIME OF USE PAYMENT
TIERED PRICING PLANS.
A FEW TARGET AUDIENCES;
EXTRACT MORE VALUE.
OVERWHELMING;
TOO MANY AUDIENCES.
CUSTOMER TIERS OF SERVICE RECURRING
PAYMENTS
IT LIMITS ADOPTION;
A HIGH CHURN.
PER USER PRICING.
SIMPLICITY;
REVENUE SCALES WITH
USERS GROWTH.
A FEW
CUSTOMERS
SERVICE PAYMENT PER
USER
FREEMIUM BUSINESS MODEL.
EASIEST ADOPTION EVER;
EASY TO BECOME VIRAL.
REVENUE KILLER;
EASY TO CHURN.
CUSTOMER FREE ACCESS PAY FOR ACCESS
PSYCHOLOGY TACTICS
AS YOU CHOOSE THE MODEL,
THE TACTIC COMES INTO PLAY!
3 APPROACHES
HOW TO SETUP PRICING WELL
PRICE ANCHORING
THE MOST
EXPENSIVE GOOD OPTION ALSO GOOD OPTION
CONTACT US CONTACT US CONTACT US
PUT THE MOST EXPENSIVE ON THE LEFT
$1680/month $560/month $140/month
CHARM PRICING
LET PRICE ENDS ON .99
PRODUCT BUNDLES
SELL UNPOPULAR PRODUCTS WITH POPULAR ONE FOR LESS PRICE
BUILD THE GOOD
PRICING PLANS
YOUR CUSTOMER SHOULD BE ABLE TO
UNDERSTAND THE DIFFERENCE BETWEEN
EACH OF THE PLANS IN UNDER 20 SECONDS.
DO NOT BE AFRAID
TO IMPLEMENT PRICING CHANGES.
ANY PLAN SHOULD BE:
UPGRADABLE
DEALS BECOME MORE
COMPREHENSIVE AS
YOU GROW.
VALUABLE
ENTERPRISES DO NOT
CARE ABOUT PRICES.
FEATURES ON THE FIRST
PLACE.
www.cobloom.com/blog/saas-pricing-models#
www.firstround.com/review/the-price-is-right-essential-tips-for-nailing-your-pricing-
strategy/
www.blissfully.com/saas-trends/2019-annual/
www.getcheddar.com/blog/what-is-usage-based-billing-saas/
RESOURCES

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How to choose profitable SaaS pricing model?