Product pricing and bundling dilemma
I've been struggling with this issue for a while, I have a successful SaaS product but want to build on new products/feature sets, and in terms offering it to customers, I can't decide whether to:
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position it as a standalone product with it's own pricing
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incorporate it into existing plans (different price tiers), similar to what most big SaaS companies do
There's strong pro's and cons of both. Selling a product solo means I can market it more precisely to it's audience (which is slightly different, but large overlap with my existing product), but I see my big competitors taking mostly the bundling + tiered strategy, but I think this is because they have big feature sets and brand recognition.
I assume there is a some science to when you spin something off as it's own product/pricing this but I can't find much info. Any thoughts?
As often: this depends. Without knowing more about your business and customers, it's difficult to give a precise answer.
As such I want to add another option to the mix—something I've done recently—add a new feature and provide it as a separate add-on (so they can opt-in to use and pay for it next to their current plan). The feature itself is actually a great fit within the product, but not every customer has a need for it. I learned this by simply asking them. I could've made a separate product out of it too, but putting it to market as such is just too much of a time waste.
Might be something for you to consider too.
Yeah that's another option that had crossed my mind, and probably a good starting point while I feel it out further. Thanks for the validation.
I have the similar concern that I don't think every customer is going to need the feature. That's why I find it counter-intuitive that my bigger competitors are all bundling, but I suspect there's some logic, like once you cover a good chunk of the feature sets in the niche it makes sense to try to get a customer to commit to your whole ecosystem.
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Thanks
This is a great question. I'm interested as well. Not at that point yet, but I anticipate I'll have the same problem next year. Currently focusing on my base product, but already have ideas for "parts of it" that I'm not sure would be either to bundle or market/offer separately.
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Sorry for being blunt, but this is the worst advice I ever heard on pricing. Unless you're only the user and never the product owner.
Also, your comment suggests you only read the title and not the OPs post. He asks if he should bundle the product or market it separately.