Business-to-business (B2B) companies developing Software as a Service (SaaS) products are faced with more competition than ever. New products are hitting the market at an unprecedented rate, meaning it takes more than simply offering a product to capture the hearts – and wallets – of today’s consumers.
Just 10 years ago, the SaaS marketplace was quite different than it is today. The marketing tech segment, for example, has become far more competitive, with more than 8,500 products available now, compared to 500 products a decade ago.
Pricing your product is a critical consideration for SaaS companies facing fierce competition. Founders and their teams should think of pricing as a key element of their competitiveness.
As an early stage founder, you’ve conducted extensive customer research, developed your team of rockstars, built or iterated on your minimum viable product (MVP), and you’re ready to start selling.
Before you begin contacting leads and booking demonstrations, you must have a strong, yet nimble pricing strategy in place to compete on a global scale, and grab hold of that highly sought after market share
In the early days of building your business, experimenting with pricing is an essential part of establishing product-market fit. Often, this means your sales and business development teams spend hours building and customizing proposals from scratch for potential clients to determine what works and what doesn’t.
Fortunately, there are a number of tools and guides that will help you price your product and save your team some time. There are some really valuable resources available to help you develop and enhance your pricing strategy, and we’ve rounded them up and listed them below.
Save time with SalesRight
Bill Wilson, CEO of Volta Resident company SalesRight, has been working on a product that solves the pricing pain many SaaS companies experience. SalesRight is developing software to simplify complex pricing models for SaaS companies that sell B2B products or services. The platform helps SaaS companies and their sales teams gain insights, save time, increase deal closing speed, and provide customers with the choice they desire.
Make informed decisions with ProfitWell Metrics
Tracking metrics is key for any business that wants to grow. The ProfitWell Metrics tool is specifically designed to help SaaS companies optimize pricing and decrease customer churn. This free tool brings all of your financial and SaaS metrics into one convenient location so you can make informed decisions, and leverage new opportunities to grow your recurring revenue.
See the best of the best with Crazy Egg’s resource
Seeing examples of best practices is a great way to ensure you’re on the right track. Crazy Egg, a web app that provides “eye tracking tools” for websites, has pulled together a great blog on the best SaaS pricing pages. The blog includes key examples from notable companies and offers insights on what makes their pricing pages effective, such as their choice of headlines and how they highlight the features included in various pricing packages.
Get the blueprint for SaaS pricing with Price Intelligently
By now you probably realize that your pricing strategy and pages matter – a lot. Luckily, Price Intelligently has a comprehensive guide that provides you with a blueprint of sorts to developing your pricing strategy. The SaaS pricing page blueprint: A study of the top 270 SaaS pricing pages offers founders and their teams an analysis of the “current state of SaaS pricing strategy and pricing pages,” as well as insights on pricing page layouts and tier structures.
Pricing your SaaS product isn’t an easy task. When it comes to pricing your product, you should support your pricing decisions with a sound strategy, based on research and a strong understanding of your ideal customers. Equipped with these resources, you’ll be better prepared to tackle pricing your product, and make informed decisions as you go.