Best way to set pricing for SaaS and On Downloadable product
I have as SaaS and Downloadable product; same product just one in cloud (monthly) and one on-premise (downloaded). The product is in the point of sale space.
I am about 30-50% cheaper than what I think are comparable products. I have a good following but wondering if some people don't pick my product because it appears cheap. I do have some churn and 7 times out of 10 it is because their business closed. (Based on exit survey)
Am wondering if I raise my prices I will get a different type of client that won't churn as much and maybe get more customers?
What are some methods you use to find the right pricing?
I dont what works for you, the downloads or the cloud offering. My suggestion would be to only offer cloud and if someone is insisting on downloaded versions then its a custom price for that.
The reason is when I look at the two prices on the screen I am not doing a apples to apples comparison as there is no information on the page on pros or cons of one vs the other. I am making assumptions which in my case is that downloaded is always cheaper (which maybe untrue) and also its on my machine so in my control (also untrue) and I just buy once for ever(also untrue).
Also the page requires some sprucing as it doesn't seem sharp enough and rows are misaligned.
this is something go think about. Can you send screenshot of rows misaligned? I can’t reproduce on devices? Which browser and os?
Sent email
Thanks! I got the bug fixed (it was just on firefox and iPad). Still mulling over pricing and your idea on showing just cloud
My method is keep increasing until people stop paying!
Read about the "perceived value" of something priced higher too!
You can test out audiences for pricing in a controlled test period to understand behavior of users on your website. So the simple A/B test on a pricing page but the time period has to be short else it will confuse users .
You can do all the analysis in the world but you dont know what value a user associates to your product and brand till they see the price on your website.
Also if you think you are priced low means you are definitely priced low. Whenever a founder comes to me with thier price for a product I usually ask them to increase it 25% just cos of entrepreneur perfectionist bias. You never think your product is the best or its complete.
Also forgot to mention, I have been in business for 5 years and have raised a little bit after year. The SaaS product price doesn’t have any loss of customers. The download has lost customers as I have raised but revenue is only down a bit.
Do you have a link I can look at?
phppointofsale.com
This comment was deleted 8 years ago
This comment was deleted 8 years ago