At www.ga-insights.com 90% of our sales to date have been SME or Mid-size businesses with $7-40pm plans to be the normal SaaS deal.
We launched a new product in the last few months that has resonated with much larger businesses. https://www.ga-insights.com/alerts
Not a bad problem to have, but the requests are for usually tailor-made packages, so this fits our 'Enterprise' package quite nicely.
The thing is though, how the heck do I price it?
So far have been testing the waters, and setting up voice calls with key players to try and establish what value we are delivering and pricing accordingly. But I'm really unclear if sometimes I'm selling our product too cheap, but then I don't want to scare away the deal.
Here are the challenges:
Sweet spots. It seems that some don't flinch at $300+ pm deals, whereas I recently had a billion-dollar ARR company negotiate us down to $60pm. Should I even be thinking in terms of per-monthly prices and costs - annual maybe suits enterprise better anyway? This is still a part-time gig, and I can't help but feel if I'm selling the contracts for too little, I'm giving up the opportunity for this to becomes a full-time business.
Overheads. I just recently read a procurement contract from another $1B ARR company that came in at 25,000 words, specified SLAs, support expectations and a million other things. Surely they aren't expecting a $60pm deal? Of course, I'm going to try and go for a higher deal here, but again I think I'm lacking a strategy.
Reading about pricing strategies, a popular one is cost-plus pricing. You total your costs then add a margin, simple really. But again, does that apply to enterprise sales? I feel I should be driving up quotes here so we can become a growing company and ultimately improve our services as well as our bottom line. I can't do that as well with small deals to very large companies.
So to drive prices higher, I really need to justify something that these companies are getting for the higher quote. It can't just be the same service as what is listed on our pricing table. Here are a few thoughts:
Grateful for any help or suggestions!