Pricing Low-Touch SaaS
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Pricing Low-Touch SaaS
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Re: Pricing Low-Touch SaaS
#2>Reduce decision fatigue for customers.
I am a huge evangelist of this piece of advice. I'm the founder of a startup that offers ONE price --- and free trial credits, of course --- for each product. I think it has helped us tremendously.
The amount of startups I see that use the 3-column pricing plans (or worse!) is mind-boggling. Perhaps there is empirical evidence supporting complicated pricing. But I've never seen it. I specifically went with one price per product because I think complicated pricing plans negatively affect sales and sign-up rates, not to mention operational complexity!
If you're interested, here's our pricing page: https://siftrics.com/pricing.html
Re: Pricing Low-Touch SaaS
#3A 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 because "I don't think you can make a profit with that pricing" and they tell me "why do you care? "
As a customer: "I am paying you for a service because I want the peace of mind that I don't have to do it myself. If you business isn't profitable, you're going to go out of business and I'm going to have to find a new way to provide this service."
As an employee I reject the marxist idea that I'm necessarily getting ripped off if I make more value than I get paid. If you are not making a profit for your employer why should they hire you?
In a profitable company you are often struggling to get a decent computer, good working procedures, etc. In a non-profitable company it's almost impossible that they'll treat you with respect and give you the resources you need.
My one complaint is that, mindlessly, this article has a pop-up at the bottom that says "you are browsing this web site from India (not true), click here for our regionalized site..."
Sure big companies like Dell, Logitech, waste your time when you are looking for content by trying to segment you via country, are you an SMB (the article explains why the word "SMB" is mindless), etc. You'd think internet-native firms would know better.
Re: Pricing Low-Touch SaaS
#4I have a related question: Is high-touch saas (enterprise sales with long sales cycles) inherently harder to bootstrap than a low-touch saas business?
I'm guessing the answer is something like "not if you have the network"
Re: Pricing Low-Touch SaaS
#5>Reduce decision fatigue for customers. I am a huge evangelist of this piece of advice. I'm the founder of a startup that offers ONE price --- and free trial credits, of course --- for each product. I think it has helped us tremendously. The amount of startups I see that use the 3-column pricing plans (or worse!) is mind-boggling. Perhaps there is empirical evidence supporting complicated pricing. But I've never seen…
Much of the time I know I need to do 10,000 API calls and do them in the next week. I don't want to get "X API calls a month". I love the simplicity of AWS pricing where you pay for what you use -- except for the "free use" part which leads people to spend $5000 worth of time to save $5. (I would be richer than Jeff Bezos if I had a penny for every time somebody did something stupid or wasteful to stay within the free use tier.)
Re: Pricing Low-Touch SaaS
#6>Reduce decision fatigue for customers. I am a huge evangelist of this piece of advice. I'm the founder of a startup that offers ONE price --- and free trial credits, of course --- for each product. I think it has helped us tremendously. The amount of startups I see that use the 3-column pricing plans (or worse!) is mind-boggling. Perhaps there is empirical evidence supporting complicated pricing. But I've never seen…
We did the same, it's I think one of our best moves because everyone just gets the same price, nobody feels like they're missing out and it's super easy to administrate so we can concentrate on the product, not the pricing.
Re: Pricing Low-Touch SaaS
#7>Reduce decision fatigue for customers. I am a huge evangelist of this piece of advice. I'm the founder of a startup that offers ONE price --- and free trial credits, of course --- for each product. I think it has helped us tremendously. The amount of startups I see that use the 3-column pricing plans (or worse!) is mind-boggling. Perhaps there is empirical evidence supporting complicated pricing. But I've never seen…
Much of the time I know I need to do 10,000 API calls and do them in the next week. I don't want to get "X API calls a month". I love the simplicity of AWS pricing where you pay for what you use -- except for the "free use" part which leads people to spend $5000 worth of time to save $5. (I would be richer than Jeff Bezos if I had a penny for every time somebody did something stupid or wasteful to stay within the fre…
> if I had a penny for every time somebody did something stupid or wasteful to stay within the free use tier.
You make a good point. I suppose it doesn't apply in quite the same way here, since we offer lifetime free credits --- they don't refresh each month. 1,000 free pages, then you have to pay.
Re: Pricing Low-Touch SaaS
#8Great 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 tier to help with organic marketing, I don't offer a free trial of the full version but I offer refunds if you're not happy, and I avoiding using "Pricing" as the pricing section heading. I might try replacing the monthly plan with a quarterly plan so subscribers aren't having to decide so often if they're going to keep paying (I rarely see a SaaS doing quarterly plans without monthly plans though). I suspect I'm giving too much away for free as the free version will probably cover a lot of small business websites.
Re: Pricing Low-Touch SaaS
#9>Reduce decision fatigue for customers. I am a huge evangelist of this piece of advice. I'm the founder of a startup that offers ONE price --- and free trial credits, of course --- for each product. I think it has helped us tremendously. The amount of startups I see that use the 3-column pricing plans (or worse!) is mind-boggling. Perhaps there is empirical evidence supporting complicated pricing. But I've never seen…
Haha I've built a very rudimental version of this for my personal documents. No grouping or categorizing of text areas, just PDF->OCR->Database. I do scan for letterheads, though, and save them in a separate table.
A question, if I may: How big is your userbase?
Re: Pricing Low-Touch SaaS
#10>Reduce decision fatigue for customers. I am a huge evangelist of this piece of advice. I'm the founder of a startup that offers ONE price --- and free trial credits, of course --- for each product. I think it has helped us tremendously. The amount of startups I see that use the 3-column pricing plans (or worse!) is mind-boggling. Perhaps there is empirical evidence supporting complicated pricing. But I've never seen…
3 column is used for anchoring you to get to the desired pricing (the middle one).
https://www.nickkolenda.com/conversion-optimization-psycholo...