Questions

My website is in the SaaS field; so I feel that price is more important to customers than in other industries, especially since through my survey responses everyone has been saying to lower my pricing. How important is being in a similar "pricing range" as your competitors in a SaaS business?

From experience, I can tell you that customers will always say that prices are too high and you need to lower it. They will not be doing their job if they don't. So take the survey voices with a grain of salt.

One of the first things you need to do is determine who are you competing against. Next determine what attributes you offer that they don't and are important to your customer. Maybe you offer 24 x 7 support and your competitor does not. And maybe your customer values this. If so, determine how much is this feature worth to them. That should give you a good idea for price.

Perhaps the most important part is to then go and show the customers this analysis. Make them aware of the value you have created. Show them how their product or service is better because of you.

Hope this gives you some framework to address your question. All the best


Answered 6 years ago

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