Getting pricing right is one of the most difficult — and important — challenges a SaaS company faces. In this guide you’ll find the best resources available to help you determine your ideal pricing model.
Editor’s note: This is a living document, and our goal is to update it regularly with the best resources around SaaS pricing. Have a suggested link we should add? Let us know in the comments below.
Pricing is an area that many startup and expansion-stage software companies struggle with. We’ve developed and featured a lot of pricing best practices over the years, from OpenView as well as external experts. Below you’ll find the best of the best.
SaaS Pricing Basics
Your Quick Guide to SaaS Pricing and Packaging
How do you price a subscription product? SurveyMonkey’s Brent Chuboda provides tips on developing the best SaaS pricing structure for you.
Ultimate Guide to SaaS Pricing
This presentation from Lars Lofgren at KISSmetrics provides a terrific overview of the challenges and opportunities of SaaS pricing, including right and wrong ways to pick a price and seven rules to give your pricing the edge.
A Study of the Top 270 SaaS Pricing Pages
Our friends at Price Intelligently have been working to help SaaS companies optimize their pricing strategies for years, and it is also great that they are local and are our go to local resources for all things SaaS pricing related. In this one of a kind, comprehensive study of the market, Patrick breaks down the best practices as well as persistent mistakes companies make in designing their SaaS pricing pages. Check this out and some of the best content on the topics on their blog at blog.priceintelligently.com.
SaaS Pricing: The True Cost of Shortsighted Decisions
SaaS pricing is complicated. Before you make a decision, you need to consider all the angles and keep in mind that it is perhaps the single most important decision a young company can make (no pressure).
How to Screw Up Your Software Pricing & Packaging Completely
Software pricing strategist Jim Geisman shares three reasons why software companies often miss the mark when it comes to the delicate relationship between packaging, price, and cost.
The Art of Pricing Software Features
In this webinar recording, Jim Geisman offers a breakdown of software pricing models, how product value is created, and how to get paid for the value delivered in your applications. Watch the video.
Cashing in on the Right Model
10 Steps to a Better Pricing Model
Developing a good pricing model requires experience, insight, and wisdom — and actually implementing it takes all that plus courage. Software pricing expert Jim Geisman shares 10 tips to help you develop a more successful pricing model.
A Complete Guide to Changing Your SaaS Pricing
A very timely blog post by our local experts at Price Intelligently on the needs for updating your SaaS pricing model – because all SaaS product markets are constantly evolving. They also helpfully provide a guide to do this the right way and smoothly transition your customers onto the new pricing plan.
Don’t Blindly Model Your SaaS Pricing on 37signals
GizaMetrics founder Ray Grieselhuber argues that arbitrarily assigning low prices is a big reason why many startups fail, and suggests developing a better understanding of the different SaaS sales models as well as offering annual pricing, instead.
Tiered Pricing Structures
3 Steps to Creating a Smart SaaS Pricing Structure
Is your SaaS business facing a pricing crisis and you don’t even know it? Software pricing expert, Jim Geisman, shares three tips for developing a tiered pricing structure that clearly communicates the value of your various product options or editions.
The Value Metric: Optimize Your Pricing Strategy for High Growth
Value-based pricing is the way to go, but how to define it and implement it correctly? Patrick Campbell of Price Intelligently dives into this with an instructive example from Wistia, a Boston-based video content platform provider.
Multi-Axis Pricing: A Key Tool for Increasing SaaS Revenue
SaaS entrepreneur and VC David Skok explains how to create scalable pricing using multiple pricing axes, and discusses the different types of axes that can be used to capture more revenue without putting off smaller customers that are not able to pay high prices.
Fixed vs. Dynamic Pricing
Can We Expect More B2B SaaS Companies to Adopt Dynamic Pricing in 2014?
With Big Data going mainstream and the cost of data storage and processing precipitously falling, should we expect 2014 to be the year when more B2B SaaS companies move to dynamic pricing models?
TranSaaSional: Sideqik’s New Take on the SaaS Pricing Model
There may not be a truly perfect one-size-fits-all approach to SaaS pricing, but one startup’s new approach could be a big step forward toward bridging the gaps between product value and bottom line revenue.
No Free Rides: Transitioning from Freemium
Is Raising Prices the Simple Key to SaaS Success?
If you’re offering freemium in hopes of increasing customer acquisition, you might want to reconsider your pricing strategy. Learn how raising prices can actually result in more profitable customers and higher retention rates.
Dropping Freemium: How One Company Killed Its Free Plan and Grew 40% — And You Can, Too
For many SaaS companies, offering free trials and freemium plans is a no-brainer. But according to one SaaS entrepreneur, going in the opposite direction might actually do more for your bottom line.
SaaS Pricing Model: How a 10x Price Increase Lead to Happier Customers
SaaS strategist Lincoln Murphy describes how one company adjusted their SaaS pricing model by raising prices 10x — and is getting not only a boost in revenue, but happier customers in the process.
How to Increase Prices with Zero Backlash: A Lesson from Google
It’s incredibly common for startups to initially undercharge for the product only to realize their foot-in-the-door price was too low and they’re leaving money on the table. Raising prices without causing sticker shock can be difficult, but Google’s Gmail for Business provides a great example of how to do it the right way.
How Even a 10-year-old Can Compete with Free — And Win
As this story of a young entrepreneur illustrates, it’s entirely possible for companies to compete with free alternatives — it’s all about delivering the better product.
Tips on Enterprise Pricing
Enterprise Pricing Strategy: An Essential Lever of Growth for Expansion-Stage Companies
To counter the unpredictable costs of serving enterprise customers, you need to develop a rational, evolving, and effective pricing structure and licensing model. In this series, OpenView Director of Market Insights Tien Anh Nguyen discusses the importance of optimizing your prices to power growth, developing a long-term view, and focusing on value.
Big Customers Have Big Demands: 3 Tips for Building Discounts into Your SaaS Pricing Model
At the enterprise level, discounting SaaS contracts is expected, not optional. SaaS veteran Jason Lemkin If you don’t price your product right, it could severely impact your bottom line.
Startup Tips for Enterprise Software Pricing
HubSpot co-founder and CTO Dharmesh Shah shares his tips and ideas around pricing enterprise software, stressing the importance of bewaring the hidden costs of enterprise software sales and leaving yourself a way to adjust your prices over time.
Selling SaaS to Enterprises
This presentation from Jacco vanderKooij explains why, if you want to effectively sell a SaaS solution in the enterprise, you need to adopt a different methodology.
Lessons from the Big Guys
iFlop? 3 Lessons from Apple’s Pricing Strategy Dilemma
For years, no one has questioned Apple’s product or premium pricing strategies. But now, in the face of increased competition from Samsung, Google, HTC, and Motorola cutting into the iPhone’s market share, the company is revisiting its strategy with the iPhone 5S and 5C. What lessons can SaaS companies learn from Apple’s gamble on price?
3 Pricing Rollout Tactics to Learn from Netflix
When Netflix announced it would once again alter its pricing model in April of 2014, it was clear that the company was going about price change in a much more strategic manner. Learn the three tactics startups should consider when releasing a new pricing model.
Netflix Pricing Strategy: Learning from Qwikster Mistakes
Rolling out a new pricing model is a touch issue, especially when it involves increasing prices or moving towards usage-based prices. Here are five lessons on developing and implementing pricing strategies that you can learn from recent moves by Verizon, Netflix, and Major League Baseball.
Amazon Pricing Strategy: Bundling Its Way into a Competitive Position
Price is usually the determinant of a sale in most digital content markets unless a digital content seller is able to differentiate their products. Amazon did so by offering additional services to enhance the value of their digital content offerings. But if Amazon hopes to compete in the digital content spaces where it is not a market leader, it will need to make three essential changes.
Apple’s Brand Pricing Strategy in Its Early Days
John Sculley, former CEO of Apple, discusses brand pricing strategy “in the early days of the Mac which may help marketers understand how Apple might be thinking about pricing in the post-PC era.”
The Saddest SaaS Pricing Pages of the Year
Lessons do not have to be just about successes. In this incisive post, pricing experts at Price Intelligently analyze the pricing pages of some well known SaaS startups and point out valuable ways they can change to improve conversion.
What did you find the most useful in this guide? Did we miss anything? Let us know in the comments.
Photo by: Franck Blais