HOW TO CHOOSE

PROFITABLE SAAS
PRICING MODEL?
 COMPONENTS OF YOUR
SAAS PRICING MODEL.

An average startup spends only

6 HOURS
in lifetime to setup pricing model.
THERE ARE 3 CRUCIAL COMPONENTS OF A
PROFITABLE SAAS PRICING STRATEGY

REVENUE VALUE

THE BALANCE VALUE PRICING NEED TO COVER PSYCHOLOGICAL TACTIC

YOU PROVIDE / YOUR GROWTH GOALS. TO CHOOSE THE MOST
REVENUE YOU INCOME-ORIENTED
RECEIVE. PRICE.
 ESSENTIAL TIPS TO CHOOSE
YOUR PRICING MODEL.
DEFINE YOUR CUSTOMER

Demographic:

GENDER AGE LOCATION

 Professionally:
WORK YEARLY INCOME BUSINESS PAIN
 CREATE CUSTOMERS COHORTS

MELINDA JONATHAN
FEMALE, 30 YEARS, AUSTIN MALE, 35 YEARS, SAN FRANCISCO

EARLY-STAGE STARTUP OWNER SERIA A STARTUP CTO

REVENUE <1M$ REVENUE <5M$
THE LACK OF BUSINESS HARD TO SCALE TEAM
PROCESSES
COLLECT DATA ABOUT CUSTOMERS

AT FIRST, FOCUS ON FEATURES.

DEFINE RELATIVE PREFERENCES.
SURVEY EXAMPLE
SURVEY RESULTS
 AT SECOND, FOCUS ON PRICE.
DEFINE WILLINGNESS TO PAY.

The wrong question: The correct question:

HOW MUCH YOU
WOULD YOU PAY READY TO SPENT TO
FOR THAT? BUY IT
IMMEDIATELY?

GOOD SURVEYS LEAD

TO GOOD PRICING.
 CHOOSE SAAS PRICING
MODEL WISELY.

IT'S EASIER TO SATISFY 100

PEOPLE AT THE MAXIMUM FEE,
THAN TRY TO SATISFY 1000
PEOPLE AT THE LESS FEE.
 AN OVERVIEW OF PRICING MODELS:

FLAT RATE PRICING.

CUSTOMER SINGLE PRICE SERVICE

EASIER TO SELL; NO FLEXIBILITY.

EASIER TO COMMUNICATE.
 USAGE-BASED PRICING.

CUSTOMER TIME OF USE PAYMENT

LESS BARRIERS TO USE. HARDER TO PREDICT

REVENUE.
 TIERED PRICING PLANS.

CUSTOMER TIERS OF SERVICE RECURRING

PAYMENTS

OVERWHELMING;
A FEW TARGET AUDIENCES;
TOO MANY AUDIENCES.
EXTRACT MORE VALUE.
 PER USER PRICING.

A FEW SERVICE PAYMENT PER

CUSTOMERS USER

SIMPLICITY; IT LIMITS ADOPTION;

REVENUE SCALES WITH A HIGH CHURN.
USERS GROWTH.
 FREEMIUM BUSINESS MODEL.

CUSTOMER FREE ACCESS PAY FOR ACCESS

EASIEST ADOPTION EVER; REVENUE KILLER;

EASY TO BECOME VIRAL. EASY TO CHURN.
 PSYCHOLOGY TACTICS

AS YOU CHOOSE THE MODEL,

THE TACTIC COMES INTO PLAY!
 3 APPROACHES
HOW TO SETUP PRICING WELL

PRICE ANCHORING
PUT THE MOST EXPENSIVE ON THE LEFT

THE MOST
EXPENSIVE GOOD OPTION ALSO GOOD OPTION

$1680/month $560/month $140/month

CONTACT US CONTACT US CONTACT US

 CHARM PRICING
LET PRICE ENDS ON .99
 PRODUCT BUNDLES
SELL UNPOPULAR PRODUCTS WITH POPULAR ONE FOR LESS PRICE
 BUILD THE GOOD
PRICING PLANS
YOUR CUSTOMER SHOULD BE ABLE TO
UNDERSTAND THE DIFFERENCE BETWEEN
EACH OF THE PLANS IN UNDER 20 SECONDS.

DO NOT BE AFRAID
TO IMPLEMENT PRICING CHANGES.
 ANY PLAN SHOULD BE:
UPGRADABLE VALUABLE

DEALS BECOME MORE ENTERPRISES DO NOT

COMPREHENSIVE AS CARE ABOUT PRICES.
YOU GROW. FEATURES ON THE FIRST
PLACE.
 RESOURCES
www.cobloom.com/blog/saas-pricing-models#
www.firstround.com/review/the-price-is-right-essential-tips-for-nailing-your-pricing-
strategy/
www.blissfully.com/saas-trends/2019-annual/
www.getcheddar.com/blog/what-is-usage-based-billing-saas/