This is the most asked question by many SaaS founders. And it's understandable how it feels where you want to stand with competitors and at the same time you should get profit. Here are my tips on how you can price your SaaS Product.
Cost Plus Pricing
Add your margin to the overall cost you spent on the product which includes hours invested, equipment cost, travel cost, etc. If it cost you $100 to make the product and you decide your gross profit should be 30% then charge $130 to the customer.
Competition Based Pricing
Check out how much your competitors are charging in the market. Don't price too high or too low then your competitor price. Take a middle range where you can also meet your aimed profit.
Value-Based Pricing
In value-based pricing, you will determine how much profit your customer will make if they use your product. So if the customer can save $100k in costs per month, you charge them $10k per month for your product. In this case, Decide the product price at 10% of the total value delivered.
If you are a beginner you could you seek help from some SaaS marketplace like saasmantra.com to feature your product and get exposure from it.
This is the most asked question by many SaaS founders. And it's understandable how it feels where you want to stand with competitors and at the same time you should get profit. Here are my tips on how you can price your SaaS Product.
Add your margin to the overall cost you spent on the product which includes hours invested, equipment cost, travel cost, etc. If it cost you $100 to make the product and you decide your gross profit should be 30% then charge $130 to the customer.
Check out how much your competitors are charging in the market. Don't price too high or too low then your competitor price. Take a middle range where you can also meet your aimed profit.
In value-based pricing, you will determine how much profit your customer will make if they use your product. So if the customer can save $100k in costs per month, you charge them $10k per month for your product. In this case, Decide the product price at 10% of the total value delivered.
If you are a beginner you could you seek help from some SaaS marketplace like saasmantra.com to feature your product and get exposure from it.