How much should I charge?

Pricing is one of the most difficult things to get right, and you'll want to do a lot of experiments.

There are a lot of factors that go into a good pricing strategy such as your target audience (is it for everyone or it's for very particular users?), the SaaS strategy (is it low-touch or high-touch?), your company costs, etc.

Some strategies I applied in the past are:

Costs based: you calculate how much running your SaaS cost to you (include as much things as possible, but don't go nuts: one of my friends went to consider also tire wear :D) and then decide how much you want your margin to be. Add those numbers up and you'll have your price
Market based: you check your competitors and see how much they charge. Then try to understand if that price is compatible with your costs.
Value based: this is the most difficult, but will lead to more earnings. Try to understand how much your audience value your solution and then set your price based on that. For example, if your SaaS helps your clients save two hours per day per person and they have an average of 10 people with a average salary of ~50K$/year, you're helping them save ~10K per month.
This of course means that you have to know your audience deeply and target their most important problem, but that's key to any SaaS :)

If you want to go deeper, Stripe Atlas has a great guides section https://stripe.com/en-it/atlas/guides and this one on pricing would be perfect for you https://stripe.com/en-it/atlas/guides/business-of-saas

Say something nice to moonbean…

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Pricing is one of the most difficult things to get right, and you'll want to do a lot of experiments.

There are a lot of factors that go into a good pricing strategy such as your target audience (is it for everyone or it's for very particular users?), the SaaS strategy (is it low-touch or high-touch?), your company costs, etc.

Some strategies I applied in the past are:
1. Costs based: you calculate how much running your SaaS cost to you (include as much things as possible, but don't go nuts: one of my friends went to consider also tire wear :D) and then decide how much you want your margin to be. Add those numbers up and you'll have your price
2. Market based: you check your competitors and see how much they charge. Then try to understand if that price is compatible with your costs.
3. Value based: this is the most difficult, but will lead to more earnings. Try to understand how much your audience value your solution and then set your price based on that. For example, if your SaaS helps your clients save two hours per day per person and they have an average of 10 people with a average salary of ~50K$/year, you're helping them save ~10K per month.
  This of course means that you have to know your audience deeply and target their most important problem, but that's key to any SaaS :)
If you want to go deeper, Stripe Atlas has a great guides section https://stripe.com/en-it/atlas/guides and this one on pricing would be perfect for you https://stripe.com/en-it/atlas/guides/business-of-saas
jubstuff

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6 years ago
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1. 1
  
  Wow was such an amazing and insightful comment! Thank you!
  
  moonbean
  
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  6 years ago
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1

https://www.indiehackers.com/post/indie-hackers-raise-your-price-youre-worth-it-42a42f5a06

some thoughts here.

8bit

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6 years ago
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