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?

If you have a strong VALUE PROPOSITION, and your product is distinctly different from competitors, then clearly define and highlight your value; benefits of service and your UNIQUE SELLING PROPOSITION. Strong marketing copy and a brand strategy is essential to that end.

Simultaneously, as mentioned by Jason, target customers who want the value you provide in exchange for meeting the need they have. If you have a truly phenomenal product, positioning is the cure. Otherwise, split your market by offering a modified version of your tool to your secondary target audience, which is priced within the range of competitors, then upsell full or advanced versions of your product to your primary target audience.

If your product closely matches your competitor's product, you might price match or offer a discount within competitor’s price range, but only offer a discount for a limited time. When you have enough customers (by way of revenue) who use your tool and want the value provided, you might grandfather in “inaugural customers” as a thank you and charge new customers the price you can confirm via analytics.

In the end, your final price may be higher than what the survey SAYS, but lower than what you FEEL it should be. One way to be sure is to do a fee analysis. The difference in price is usually between cost and profit. Founders who give up some profit in the short-term do so for long-term gain.

Call me if you need more "clarity" or if you’d like help with content marketing, marketing strategy, product positioning and branding. My two cents add up💰

i.e.


Answered 6 years ago

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