Today we are going to talk about SaaS pricing. This is a popular topic, and we get a lot of requests to talk about pricing. Hiten was adding up his pricing related emails, and he gets about 12 a day in one form or another. One pricing related thing we do is read the Price Intelligently blog. Their free resources alone should be enough to get you started. The Bare Metrics blog and other pricing metric sites also have great content.

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The one fundamental pricing topic people forget is that the main purpose of having pricing is to make it easy for customers to buy your service. Even with a complex pricing model, you want to reduce the amount of friction for a purchase. If people are paying per page view on your product, it’s not a good idea to switch to per seat pricing.

Topics include:

Creating a pricing framework that makes it easy to buy, cheapest is not always best

How to quantify if a new SaaS product is too expensive

Product and pricing questions to ask during customer development

Creating more value with a new product can be better than price adjustments

A pricing framework is about marketing a positioning and the target customer

Focus on what will help your business grow and segmentation

Getting the facts and data can help find the right business direction

Finding your authentic competitive advantage

Links and Resources:

Price Intelligently

Bare Metrics

Kissmetrics

Personapp

Freemium in SaaS Podcast Episode 003

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Steli: Hello, everyone.  This is Steli Efti.

Hiten: And Hiten Shah.

Steli: And in today’s episode of The Startup Chat, we’re going to talk about SaaS pricing.  So this has been a very – a requested episode.  This is something a lot of people want us to talk about.  There’s a lot of great resources out there that already talk about pricing, but I know that we have a lot of thoughts on this and people want to hear us talk about this topic.  So let’s chat about that.  What’s your overall framework when it comes to figuring out pricing?  Let’s start from a new SaaS app perspective.

We can talk later about changing pricing if you feel like you haven’t gotten it right, because that’s a challenge in itself and in interesting one.  But you build the SaaS product and you’re trying to figure out what should be the price that I set for this?  What’s the framework that you use, what are mistakes that people make; what’s the way that you think about this?

Hiten: I just looked through my email, and I get about two or three emails a day from people, whether it’s internal team, external about – with the word pricing in it.  And this is not sales; this is literally questions on pricing...