SaaS Pricing Strategy: The 10x Rule
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SaaS Pricing Strategy: The 10x Rule
1–10 of 18 posts
Re: SaaS Pricing Strategy: The 10x Rule
#2Very well put, which is why it is extremely important for startups to actually figure out the value which they can create for their customers.
This is easy said than done though, depending upon what business you do.
Normally, I like to test pretty much everything (start with 10x, compare with 9x/11x maybe) but when it comes to prices, I personally feel A/B testing them is a bad idea.
Re: SaaS Pricing Strategy: The 10x Rule
#3Apologies for the blatant plug but for anyone interested, I also just wrote about another SaaS pricing strategy yesterday here: http://technicalmarketing.io/cro/saas-pricing-technique-deco... I figured it might be helpful for some people here.
Re: SaaS Pricing Strategy: The 10x Rule
#4can someone help me understand this? does it mean to simply charge 10x the cost, thus 10x the margin?
does a metered pricing fall into value? meaning if someone generates 1000 reports should it cost them 100 dollars? what if it's an all or nothing situation. the value comes from when they receive most of the 1000 and no value when it falls lower than 300? does a metered pricing make sense in this case or does a monthly subscription makes sense?
Re: SaaS Pricing Strategy: The 10x Rule
#5can someone help me understand this? does it mean to simply charge 10x the cost, thus 10x the margin? does a metered pricing fall into value? meaning if someone generates 1000 reports should it cost them 100 dollars? what if it's an all or nothing situation. the value comes from when they receive most of the 1000 and no value when it falls lower than 300? does a metered pricing make sense in this case or does a month…
It's not 10x the cost. To make it simpler, what you charge is 1/10th the value which you create for your user.
So if your user benefits by making an additional $100 by using your product, you charge him $10.
Re: SaaS Pricing Strategy: The 10x Rule
#6can someone help me understand this? does it mean to simply charge 10x the cost, thus 10x the margin? does a metered pricing fall into value? meaning if someone generates 1000 reports should it cost them 100 dollars? what if it's an all or nothing situation. the value comes from when they receive most of the 1000 and no value when it falls lower than 300? does a metered pricing make sense in this case or does a month…
He's saying.. Figure out how much value the customer gets from your SaaS app. Then divide that by 10.
For example, if you have an accounting app that saves the customer $2000 a month in manual bookkeeping, then your app should cost $200/month.
Re: SaaS Pricing Strategy: The 10x Rule
#7can someone help me understand this? does it mean to simply charge 10x the cost, thus 10x the margin? does a metered pricing fall into value? meaning if someone generates 1000 reports should it cost them 100 dollars? what if it's an all or nothing situation. the value comes from when they receive most of the 1000 and no value when it falls lower than 300? does a metered pricing make sense in this case or does a month…
It's not 10x the cost. To make it simpler, what you charge is 1/10th the value which you create for your user. So if your user benefits by making an additional $100 by using your product, you charge him $10.
Yup. You're selling profits/revenue/cost - savings at a discount. In this case, a 90% discount.
Re: SaaS Pricing Strategy: The 10x Rule
#8The key message is not the 10x rule, it's quantifying the value you create for your user. Further, the supporting message is to actively price anchor against that value.
Re: SaaS Pricing Strategy: The 10x Rule
#9can someone help me understand this? does it mean to simply charge 10x the cost, thus 10x the margin? does a metered pricing fall into value? meaning if someone generates 1000 reports should it cost them 100 dollars? what if it's an all or nothing situation. the value comes from when they receive most of the 1000 and no value when it falls lower than 300? does a metered pricing make sense in this case or does a month…
It's not 10x the cost. To make it simpler, what you charge is 1/10th the value which you create for your user. So if your user benefits by making an additional $100 by using your product, you charge him $10.
what if the value differs for each user? a user might find generating 10000 reports will save them $60 while another user generating 1000 reports will save them $100? what if they don't know how reports they generate will save them any money at all or claim so?
Re: SaaS Pricing Strategy: The 10x Rule
#10[deleted]