{"id":26287,"date":"2021-09-14T12:19:12","date_gmt":"2021-09-14T12:19:12","guid":{"rendered":"https:\/\/rbsitsoftwaresolution.com\/blog\/3-keys-to-pricing-early-stage-saas-products.html"},"modified":"2021-09-14T12:19:12","modified_gmt":"2021-09-14T12:19:12","slug":"3-keys-to-pricing-early-stage-saas-products","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/3-keys-to-pricing-early-stage-saas-products.html","title":{"rendered":"3 keys to pricing early-stage SaaS products"},"content":{"rendered":"

I\u2019ve met hundreds<\/span> of founders over the years, and most, particularly early-stage founders, share one common go-to-market gripe: Pricing.<\/p>\n

For enterprise software, traditional pricing methods like per-seat models are often easier to figure out for products that are hyperspecific, especially those used by people in essentially the same way, such as Zoom or Slack. However, it\u2019s a different ballgame for startups that offer services or products that are more complex.<\/p>\n

Most startups struggle with a per-seat model because their products, unlike Zoom and Slack, are used in a litany of ways. Salesforce, for example, employs regular seat licenses and admin licenses \u2014 customers can opt for lower pricing for solutions that have low-usage parts \u2014 while other products are priced based on negotiation as part of annual renewals.<\/p>\n<\/p>\n

Early pricing discussions should center around the buyer\u2019s perspective and the value the product creates for them. It\u2019s important for founders to think about the output and the outcome, and a number they can reasonably defend to customers moving forward. Of course, self-evaluation is hard, especially when you\u2019re asking someone else to pay you for something you\u2019ve created.<\/p>\n

This process will take time, so here are three tips to smoothen the ride.<\/p>\n

Pricing is a journey<\/h2>\n

Pricing is not a fixed exercise. The enterprise software business involves a lot of intangible aspects, and a software product\u2019s perceived value, quality, and user experience can be highly variable.<\/p>\n

The pricing journey is long and, despite what some founders might think, jumping headfirst into customer acquisition isn\u2019t the first stop. Instead, step one is making sure you have a fully fledged product.<\/p>\n

If you\u2019re a late-seed or Series A company, you\u2019re focused on landing those first 10-20 customers and racking up some wins to showcase in your investor and board deck. But when you grow your organization to the point where the CEO isn\u2019t the only person selling, you\u2019ll want to have your go-to-market position figured out.<\/p>\n

Many startups fall into the trap of thinking: \u201cWe need to figure out what pricing looks like, so let\u2019s ask 50 hypothetical customers how much they would pay for a solution like ours.\u201d I don\u2019t agree with this approach, because the product hasn\u2019t been finalized yet. You haven\u2019t figured out product-market fit or product messaging and you want to spend a lot of time and energy on pricing? Sure, revenue is important, but you should focus on finding the path to accruing revenue versus finding a strict pricing model.<\/p>\n

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Article source: http:\/\/feedproxy.google.com\/~r\/techcrunchIt\/~3\/jii-yBSRXp8\/<\/p>","protected":false},"excerpt":{"rendered":"

I\u2019ve met hundreds of founders over the years, and most, particularly early-stage founders, share one common go-to-market gripe: Pricing. For enterprise software, traditional pricing methods like per-seat models are often <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[19],"tags":[25],"class_list":["post-26287","post","type-post","status-publish","format-standard","hentry","category-enterprise-software","tag-enterprise"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t