What is the right price for SaaS project on early stage? 🤔
Today we received an email from one of our users on free plan with a request for paid plan and his suggestion for us to increase the price for this plan for him and others. He says he is in love with the product and thinks we should charge more because it will increase value for the customer and add trust that is crucial for our product (we are building videowidget that shows on users' websites content.)
This was really exciting feedback to get, but it sparked again the conversation our team had earlier. Should we set higher price for the service (which at this moment is quite low) or try to maximise amount of users to have resources to polish the product after getting feedback from paid users what they really need and how we can solve their existing issues.
What do you think early stage SaaS service should do?
Our pricing page https://videotouch.io/pricing
Hi Andrey,
How are you placed with pricing when compared to your competitors? Or, is this one of a kind? Please don't mind my ignorance on this product space.
Keep a cap of users to reach (say 100 paid customers or whatever suits your domain) and then as @Alex_ls suggests, add paid plans. Also, you can then increase the cost of Launch package to a higher number.
There are many types of pricing, value based pricing, cost based pricing, competitor based pricing. Depending on customer domain we will be to apply one or more, to start with, as long as our costs are covered or can be recovered will work in my opinion.
Thank you for the recommendation. Currently we don't have direct competors. The idea with a cap of users is great!
what about videoask by typeform?
They are focusing on interactions with users. We are focusing on incentivizing users to perform target action (send an email, phone number, or redirect to a certain page).
Hey, you should definitely check out great stuff from ProfitWell, especially their Price Intelligently free 100+ pages ebook. They give you a lot of knowledge and guidance while keeping it all free (when you scale, they also have paid tools, but I haven't used them yet)
Tom
Focus on any users on early stage. Later you can decide what you can do with that
Thank you for the advice 👌
It's like buying something for £10 then asking customer how much profit to add. I believe once you know your monthly estimated expenses plus your living costs, you'll know a figure to work with.
The pricing seems fine to me, I don't think you should listen to one customer suggestion about anything, that is how you get in weird spots. The thing about your pricing is I don't know your orgs overhead or anything so it is very possible the plan should be 19 bucks instead of 9.
Now what we should talk about is how you are missing a huge gold mine of a segment. You have music artists, pro services, etc, but not Realtors, and they eat this kinda stuff up. I'd definitely test trying to sell them on your service and see how many of them bite--not to mention, there are A LOT of them out there and 10 bucks to them is not a bad cost.
Figure out what other tool(s) customers are comparing you to, and price accordingly. If it's too cheap relative to what the customer compares you to... they will see it as lower quality or a company that won't be around later.
I understand the argument to "maximize users" but if you have the subset of users who can be profitable (say, at $50/mo) and add a bunch of users who only buy because the price is $3.99 per month; and then weight all the feedback equally, it will take you down the wrong path of product development.
This comment was deleted 3 years ago.
This comment was deleted 3 years ago.
Thank you for the advice!