How do you plan the pricing strategy of your product?

I'd say that it heavily depends on the product you're selling and the audience you're selling it to.

Generally speaking I'd start with the fixed costs you have to cover. You should have a fixed subscription fee which somehow covers those costs.

After that you might want to look at other products in your category. Users might be already familiar with the kind of product you're offering. If you're for example building an ecommerce SaaS it might be a good idea to research what Shopify, BigCommerce and such charge. Pretty sure they've been through some iterations on pricing (and maybe even blogged about their learnings).

What's important to keep in mind is that you should charge based on the value you're providing. This entails that your pricing isn't written in stone. It should be dynamic because your product will automatically be more valuable in the foreseeable future.

There's a great chapter about pricing in the book "Intercom on Starting Up". What they basically did was follow the advice from Jason Fried to not overthink it, just pick a price and start from there.

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I'd say that it heavily depends on the product you're selling and the audience you're selling it to.

Generally speaking I'd start with the fixed costs you have to cover. You should have a fixed subscription fee which somehow covers those costs.

After that you might want to look at other products in your category. Users might be already familiar with the kind of product you're offering. If you're for example building an ecommerce SaaS it might be a good idea to research what Shopify, BigCommerce and such charge. Pretty sure they've been through some iterations on pricing (and maybe even blogged about their learnings).

What's important to keep in mind is that you should charge based on the value you're providing. This entails that your pricing isn't written in stone. It should be dynamic because your product will automatically be more valuable in the foreseeable future.

There's a great chapter about pricing in the book "Intercom on Starting Up". What they basically did was follow the advice from Jason Fried to not overthink it, just pick a price and start from there.

pmuens

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6 years ago
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