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Pricing Low-Touch SaaS

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Re: Pricing Low-Touch SaaS

#81

Post by notdonspaulding »

jmarbach wrote: post #16

Patio11 is practically synonymous with the phrase "charge more" in the startup world, however, his catch phrase cannot be more misleading. For most prospective customers, you should charge less. For a select few customers, you should charge way more. Upping the ante indiscriminately only continues to make the world even more unequal and inaccessible for the people who need your products the most.

> Upping the ante indiscriminately only continues to make the > world even more unequal and inaccessible for the people who > need your products the most.

Ah, "From each according to his ability, to each according to his need?"

Re: Pricing Low-Touch SaaS

#82

Post by hobby-coder-guy »

capkutay wrote: post #61
mbesto wrote: post #10

Earlier quoted context omitted.

3 column is used for anchoring you to get to the desired pricing (the middle one). https://www.nickkolenda.com/conversion-optimization-psycholo...

3 columns. Left-most = maximizing TAM. Center = optimizing revenue. Right = maximizing revenue on strong fits.

TAM?

Re: Pricing Low-Touch SaaS

#83

Post by seanwilson »

dinkleberg wrote: post #69
seanwilson wrote: post #8

Great article with good real world examples. It's easy to underestimate how many decisions you have to juggle when coming up with pricing plans. I wouldn't mind a similar analysis for my own pricing page for an website SEO auditing tool if anyone feels like giving feedback: https://www.checkbot.io/#pricing Related to the advice from the article, I resisted offering lifetime deals and going really cheap, I have a free…

You’re giving away way too much with the free tier. As mentioned in the article, you don’t want to have any unlimited items. For the most part, people that care about SEO are making money off it. Paying $10-15/month if the tool provides them any value in their work is nothing. You’re the one with the data, so these are just my thoughts. But I’d switch the free tier to have a cap of like 100 scans a month, or maybe ev…

Awesome, thanks for taking the time for that. I'll have a think on how to address all these points.

I guess part of me wants to help people that can't afford to pay anything (hence a useful free tier), and for people that can't afford to pay much, but this isn't the best strategy for maximising profit.

Re: Pricing Low-Touch SaaS

#84

Post by jakelazaroff »

hobby-coder-guy wrote: post #82
capkutay wrote: post #61

Earlier quoted context omitted.

3 columns. Left-most = maximizing TAM. Center = optimizing revenue. Right = maximizing revenue on strong fits.

TAM?

Probably total addressable market. https://en.wikipedia.org/wiki/Total_addressable_market

Re: Pricing Low-Touch SaaS

#85

Post by teraku »

Thorentis wrote: post #72
teraku wrote: post #48

Earlier quoted context omitted.

While this might be true from a sales perspective, I'm actually annoyed when there is a product I want to buy and then I see these tiers.

This is a valid point. I've gone to sign up for a SaaS before, read through the features list and thought it was great, and then realised they've split all the features up among plans and I'll need to pay more than I was expecting to. Obviously this just means that the highest tier plan is what they think all the features together are worth, but I often find that for smaller SaaSes, the desire to have 3 plans shapes…

It's more like yjftsjthsd-h said in their comment (https://news.ycombinator.com/item?id=24548071): They suddenly make me work for it.

Sure, this might be the worth of the features, but then I might get frustrated: "I want features X and Z, but they are only in the most expensive tier. In the cheaper one I can get just X, or X and Y. So now I have to pay for X, Y, Z although I only need X and Z."

Another example: johnreed fitness gym offers three tiers. They are basically the same, but give you more flexibility in where you train. If you are a member for one year, you move up one tier for the same price. It's not clear whether or not my contract would get cheaper if I start at the highest and after a year move to the price of one lower.

So basically they made me work and think a lot just about pricing for some service I actually want because I don't want to think about it. Which made me choose another gym altogether.

Re: Pricing Low-Touch SaaS

#86

Post by ellinokon »

PaulHoule wrote: post #3

A brilliant article. Often it seems that SaaS vendors don't have a plan for pricing but rather they design a "pricing page" that looks like the pricing page for other SaaS plans. If you start asking questions like: can you afford to offer this service at this price? what value does the customer get out of this service? they get defensive. I have refused to use SaaS services and I've refused to work for SaaS vendors b…

Minor nitpick: The popup says "site for", because the linked article is under `en-in`.
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