Now I have more or less finished developing the product as a SAAS offering.I have no idea how to price it as this field is new to me.
Anyone with an SEO, content marketing background can help throw some light on it. What would be the typical pricing structure of SAAS apps in this feild.
Also, What would YOU consider a fair price for it as a monthly subscription.
@andywilliams I can’t give you dollar amounts of a number of tiers, but my advice would be don’t price it cheaply. You’ll attract the worst kind of customers that will always ask for more but think the product should be free
@andywilliams Like I said, I can’t really give you an exact amount without understanding the business better. But as a general rule, try and keep your prices as high as you can (while people are still willing to pay for it). Create value, fully understand that value (what it’s worth to that person and when the value is received), charge for that value.
I see the amount of creators putting hours and hours of work into making something valuable and they still get bombarded with “wHy iSn’t iT FREe?”.
@andywilliams You will get 0 paid signups and if you do get any they will instantly churn, if you gate the entire platform behind a subscription. I would recommend you think about a freemium model then premium that provides additional value.
@andywilliams I think one of the questions you gonna think is if you want your SaaS for B2B or B2C, or both. Secondly asking the people who inserted their email with a Google questions link with few questions for pricing like openai did with chatgpt, and provide one tier for free with limitations so it can help you grow fast I think.
@andywilliams Pricing is hard - so i get your struggle.
But the only way to figure this out is to do your research
Start with the big question: crystallize the problem you solve
Then - figure out what characterizes the people who experience this problem most
Then - try to calculate that it costs them having to deal with this (that can be in cost or lost revenue)
Then - identify what characterizes the people in that group who are prepared to pay a premium if you’d solve it and exceed their expectations (compared to their best alternative)
@andywilliams What is your primary objective for say 1st 3 months.
Get to revenue and profitability
Get as many users as possible
collect user feedback, improve product get product-market fit
Pick anyone - all good goals. For example at breeze.ai we picked 3.
For #1: Pricing is a art and science. Look at competition always a good starting point - Semrush and ahref. Price competitively around them and add multiple expiring offers 10% / 15% / 25% etc. average SaaS gross margin is 90%-95% so another way to consider pricing.
If you want #2 or #3 - I hope you costs are low and manageable. Then go for a audacious goal say 50k users. Fermium pricing just enough free uses or time to give people a taste and craving for the app. Price is ridiculously low after that.
