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The secret of pricing and startup success!

The majority of companies failed to find the proper pricing. I am fascinated by SaaS (Software as a Service) companies. I like it because of the intense competition and rapid progress. Because they are virtual, SaaS corporations have one of the lowest expense ratios. We don't worry about packaging, shipping costs, FBA fees, or anything else. SaaS firms pay for the domain name, hosting, and transaction costs, which is almost all that is required.

This post will show you how to boost your profit margin and how to manipulate your customers' perceptions so that they believe you are superior even though you are more costly.

When I look for a software tools on Google, the price drops as I scroll down. All of the links are rivals vying for clients. The strongest in digital marketing are found on the first page of Google with premium pricing, while the remainder are often found on the final few pages. One of the most common issues that startups and small businesses face is offering their goods at too cheap. As a new business owner, we tend to believe that consumers are seeking for the lowest option, and that the lower the price, the more customers would sign up; however, this is a misconception.

It's all about how you portray the product and how you feel about it. As a company’s stakeholder, consider the following: what does your company do? Is your product regarded as high-end or low-end? If you provide customer service (chat or email support), a strong warranty, you are a high-end product. I just listed two, examples but the list is lengthy. High end comes at a cost, and one of them is design. Take, for example, Apple. You may or may not like Apple, but they believe themselves to be high-end. Apple is well-known for its sign-packaging, yet the same configuration may be found for a lower price. Apple is providing you a new laptop that costs more than any competition. It's no surprise that the MacBook Air is the most popular computer on the market.

Apple isn't only selling you a laptop; it's also selling you emotions but a lifestyle of modernity. Consider the lifestyle and feelings you deliver to your clients while creating a product. What feelings does Red Bull elicit in you? They market Red Bull as a drink for individuals who like excitement, danger, and sports rather than as an artificial drink.

Another good example: why do you need a car? Most individuals may respond by going faster. But what motivates individuals to spend $450,000 on a Rolls-Royce or $200,000 on a Lamborghini? Is it because of the features? No, it's the lifestyle of luxury, being sophisticated, and demonstrating to people that you aren't anybody, and therefore you are someone significant. Features aren't the most essential thing in your company; why should you spend $200,000 for a Lamborghini if it isn't a 4x4, has no heated seats, and will be stranded in the winter or desert? Let us now discuss the key reason for the Lamborghini: speed. The speed limit on the highway is 65 mph (100 km/h). Unless you have two helicopters and 20 police behind you on the highway, you will never have to travel at 355 km/h, or 220 mph. It's all about how you live. Choose your brand's lifestyle as a SaaS owner is crucial. It could be acompliment or safety. If you're stuck for ideas, turn on the television and watch the ads.

To summarise, you now have a better grasp of how to play with your customers' perceptions and get the best price, even if it is hire rather than any other organization.
Need more!!

  1. If you go to YouTube, you will find a wonderful TED Talk titled: Are we in control of our decisions? By Dan Ariely. This video will teach you about how to uses classic visual illusions and | Dan’s own counterintuitive (and sometimes shocking) research findings to show how we're not as rational as we think when we make decisions.

  2. Learn more about TAM Total Addressable Market

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