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The 5$ SaaS

alpblog.heroku.com

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31–39 of 39 posts

Re: The 5$ SaaS

#31

Post by impostervt »

scott_meade wrote: post #30
impostervt wrote: post #28

I priced my side project at $5/month, because it was the lowest amount of money that made it worth doing the work. I did A/B testing before I started charging, and there was no difference between charging $12/year, $3/month, $4/month, and $5/month. Which is crazy, but it reached statistical significance according to optimizely. And fewer customers for the same money sounded good to me.

Why price at the lowest amount that makes it worth it instead of the highest amount that people will pay? Said another way, did you test $6/month, $10/month, $20/month?

No. I should have, but at the time I wasn't getting very much traffic so it was hard to test many options and achieve significance. I was honestly surprised people would pay more than $12/year, and just counted my blessings.

Re: The 5$ SaaS

#32

Post by UnoriginalGuy »

sondh wrote: post #4

He mentioned the github $5 plan however I always pays $7 each month since the beginning. I checked github pricing[1] and it's showing the micro plan starts at $7/mo. Is there a lower plan by buying in bulk, paying annually or else? [1] https://github.com/plans

I might get blasted for this but I always found Github a little on the pricey side from a personal perspective.

I mean I love how they treat the OSS community and I like the product they ship, but $12/month for what is essentially a worse product than what DropBox gives you for free.

Re: The 5$ SaaS

#33

Post by hendi_ »

My SaaS app was priced exactly 5$/month previously. It had a decent conversion rate, a handful of users, lots of support requests, and a bit of revenue.

Meanwhile I've increased the prices, the cheapest plan is now 29$/month. Guess what? Conversion rate didn't change, thus I gained new users at the new price point (I of course grandfathered old users), and of course the revenue increased almost by a factor of six. What's also interesting is that I get way less support requests from the people who pay more, thus the six-fold increase of the monthly price resulted in more than six times profit (profit = 6 * old_revenue - 3 * old_support_request_rate)

Re: The 5$ SaaS

#35

Post by pdonis »

The big thing I notice about this list is what's not on it: Google and Facebook. Imagine if you could pay $5/month to Google for search services and not have to worry about the long-term consequences of the ad-supported business model.

Re: The 5$ SaaS

#36

Post by dkroy »

UnoriginalGuy wrote: post #32
sondh wrote: post #4

He mentioned the github $5 plan however I always pays $7 each month since the beginning. I checked github pricing[1] and it's showing the micro plan starts at $7/mo. Is there a lower plan by buying in bulk, paying annually or else? [1] https://github.com/plans

I might get blasted for this but I always found Github a little on the pricey side from a personal perspective. I mean I love how they treat the OSS community and I like the product they ship, but $12/month for what is essentially a worse product than what DropBox gives you for free.

Or even BitBucket.

Re: The 5$ SaaS

#37

Post by Juuumanji »

hendi_ wrote: post #33

My SaaS app was priced exactly 5$/month previously. It had a decent conversion rate, a handful of users, lots of support requests, and a bit of revenue. Meanwhile I've increased the prices, the cheapest plan is now 29$/month. Guess what? Conversion rate didn't change, thus I gained new users at the new price point (I of course grandfathered old users), and of course the revenue increased almost by a factor of six. Wh…

Is your SaaS B2B or B2C?

Re: The 5$ SaaS

#38

Post by hendi_ »

Juuumanji wrote: post #37
hendi_ wrote: post #33

My SaaS app was priced exactly 5$/month previously. It had a decent conversion rate, a handful of users, lots of support requests, and a bit of revenue. Meanwhile I've increased the prices, the cheapest plan is now 29$/month. Guess what? Conversion rate didn't change, thus I gained new users at the new price point (I of course grandfathered old users), and of course the revenue increased almost by a factor of six. Wh…

Is your SaaS B2B or B2C?

My SaaS is Bunker App (https://www.bunkerapp.com/), and its customers are freelancers. I don't know if this qualifies as B2B since most of my users are single freelancers or at most small shops.

Re: The 5$ SaaS

#39

Post by fakeer »

pdonis wrote: post #35

The big thing I notice about this list is what's not on it: Google and Facebook. Imagine if you could pay $5/month to Google for search services and not have to worry about the long-term consequences of the ad-supported business model.

Yes I imagine that and "you" will be a very small (tiny) subset of the entire population that uses Google and it will be so inconvenient seeing the (growing) dependence.
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