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  • Writer's pictureJonathan Bullock

A quick guide to pricing your SaaS offering

Pricing your SaaS offering can be a daunting process and a defining milestone for your startup. SaaS pricing should be well considered with a clear understanding of the target market segments and competitive environment.

Here are 10 things to consider when pricing your SaaS options.

Tiered Pricing – On your pricing page, layout your plans with the most expensive on the left and the least expensive on the right. People naturally read left to right and this order presents a stronger value proposition.

Prominent position – Your best value plan should be located in the middle and be highlighted so it is very visible.

Use Whole Dollars- Don’t use cents in SaaS pricing stick to whole dollar values, but if possible include a 9 in the price.

Provide Fewer Choices – 3 is a good number of options. If you provide too many choices it may create analysis paralysis, costing you a sale.

Create Scarcity – Providing time or volume-limited options creates an impression of scarcity and leads to FOMO (fear of missing out).

Show you care – Engaging with your community and discussing things other than the hard sell builds credibility and demonstrates reputation.

Frictionless Checkout – You want the purchase process to be as simple as possible any issues in the process could cost you a sale.

Discount Pricing – Small discounts such as trial periods or percentages off for the 1st month can be a great tool to get people hooked.

Simple Language - Don’t get caught up in jargon, all your text should be readable by anyone.

Testimonials – Provide testimonials and case studies to demonstrate social proof that your product works in the real world.

TAKEAWAY: These 10 tips should be checked off and thoroughly considered when developing and implementing your SaaS pricing and marketing strategy. Each of these elements may only contribute a small amount to your overall sales volume, but collectively they can determine success or failure.


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