How to decide SAAS pricing?

Charge more than you think you should. Distilled from advice from @yongfook and @patio11 (twitter/HN)

Do you have competitors? What do they charge?

Are your target customers using alternatives if not competitors? How much do they pay for those?

Now compare yourself to your competitors and your alternatives. Are you better or worse than them, product wise? If you're better, charge more. If you're worse, charge less.

If you're making a new product that's unlike anything else on the market and you have nothing to compare yourself to... you probably have a bad business idea 🤪

But honestly, raising or lowering your prices is not a big deal. Just pick something fair and reasonable and continue raising prices every so often if you can.

Firstly, decide upon the model - if it's freemium or premium with a free trial. Most of the time, the free version works just fine, but you need to decide if your product will not be good enough that everyone will stay with the free version. If you go with free trials, eventually you will validate the pricing that works - from the churn level.

Secondly, check your competitors and decide on which tier you will land your SaaS. Is it on the expensive side or a more affordable brand?

Again, I always trust the rule that you can ask the target group of how much they are comfortable paying. Usually, when they say a price, the final price will be lower.