Ultimate pricing guide for saas companies: how to get started and scale your pricing
Posted: Tue Dec 24, 2024 8:33 am
Whether you like it or not, companies that have “software as a service” – the famous Saas – are increasingly popular.
With a quick Google search you can find thousands of companies around the world… That’s a lot of competition!
This fierce competition requires companies to always look for new hacks, whether for customer acquisition or even customer retention.
It turns out that most of these new companies entering the market do not know how to price their services.
With this in mind, I decided to bring you a Definitive Pricing business owner database Guide for SaaS companies . Showing you how to get started and even scale your pricing.
Let's go?
Pricing for SaaS companies
The truth is that few companies do market research on products and pricing before launching a product. And that is a mistake.
Understanding how the market works, how your competitors behave within it, is the first step before entering the market.
Before launching a product, it is extremely important that you have a pricing strategy.
Let's look at some pricing techniques for SaaS companies:
You can offer free, limited features with an option to upgrade to full access.
Charge users a subscription fee.
Charge active users a subscription.
Charge a single fee, regardless of how many resources the user is using.
Charge a dynamic fee depending on the resources used.
Below you will understand each type of pricing for SaaS companies as some of them. Study, because one of them may be yours.
Pricing for B2B SaaS companies
Anyone who is already a reader of Mercado Hack knows that a consumer will only spend money with you if you generate value and, of course, have a reasonable price.
Also read: 7 Tools to Find Keywords for YouTube
This also applies to SaaS companies. In fact, even more so, since if your pricing strategy is monthly subscription, you need to have an affordable price and a quality service.
However, in the case of B2B (Business to Business) companies, pricing strategies work in the same way.
Here are some pricing models for you to study. Remember that, depending on your strategy, some models may not be effective for your business.
1- Freemium
Freemium is nothing more than a model where the product (or subscription) is free, however, the user has limited access to tools and resources.
If you want to use all the tools and products, you must purchase the upgrade.
Freemium is ideal for users to start using your product.
However, if your goal is to generate revenue, this is not the best pricing.
2- Per user
Per-user pricing is when a SaaS company charges for the service via subscription for each user.
This type of pricing is good if your focus is to have a calculated revenue.
But be careful, your buyers can share the same login with multiple people.
3- Per Active user
Same thing as the previous model, however, with the small difference that it is the active user.
For example, regardless of how many people access the service, the amount charged will only be for the number of active users.
This type of pricing is good if your SaaS company provides service to large-scale companies.
However, it is not a good model if you are dealing with smaller companies.
4- Single fee.
As the name suggests, the “Flat Fee” pricing model is when companies charge users a single, flat fee, regardless of how many people use the product.
Read also: Why is Customer Connection Essential in the Business World?
This model is ideal if your clientele is not diverse.
Otherwise, it's not a good choice.
5- By resource
Same as the previous model, however, the rate varies according to the number of resources the user will use.
In other words, the more resources and tools the user wants to use, the more benefit the service will have.
This model is good if you offer advanced features and tools that encourage the user to upgrade.
If your service is simple and does not require more advanced features, this type of pricing is NOT the best for you.
Conclusion
I hope this guide helps you find the best pricing for your SaaS company.
If you want to improve your studies, download our free E-Book on Growth Hacking: Leads and Sales . In it, I present 4 success stories where I use several Growth tools, showing my planning step by step.
With a quick Google search you can find thousands of companies around the world… That’s a lot of competition!
This fierce competition requires companies to always look for new hacks, whether for customer acquisition or even customer retention.
It turns out that most of these new companies entering the market do not know how to price their services.
With this in mind, I decided to bring you a Definitive Pricing business owner database Guide for SaaS companies . Showing you how to get started and even scale your pricing.
Let's go?
Pricing for SaaS companies
The truth is that few companies do market research on products and pricing before launching a product. And that is a mistake.
Understanding how the market works, how your competitors behave within it, is the first step before entering the market.
Before launching a product, it is extremely important that you have a pricing strategy.
Let's look at some pricing techniques for SaaS companies:
You can offer free, limited features with an option to upgrade to full access.
Charge users a subscription fee.
Charge active users a subscription.
Charge a single fee, regardless of how many resources the user is using.
Charge a dynamic fee depending on the resources used.
Below you will understand each type of pricing for SaaS companies as some of them. Study, because one of them may be yours.
Pricing for B2B SaaS companies
Anyone who is already a reader of Mercado Hack knows that a consumer will only spend money with you if you generate value and, of course, have a reasonable price.
Also read: 7 Tools to Find Keywords for YouTube
This also applies to SaaS companies. In fact, even more so, since if your pricing strategy is monthly subscription, you need to have an affordable price and a quality service.
However, in the case of B2B (Business to Business) companies, pricing strategies work in the same way.
Here are some pricing models for you to study. Remember that, depending on your strategy, some models may not be effective for your business.
1- Freemium
Freemium is nothing more than a model where the product (or subscription) is free, however, the user has limited access to tools and resources.
If you want to use all the tools and products, you must purchase the upgrade.
Freemium is ideal for users to start using your product.
However, if your goal is to generate revenue, this is not the best pricing.
2- Per user
Per-user pricing is when a SaaS company charges for the service via subscription for each user.
This type of pricing is good if your focus is to have a calculated revenue.
But be careful, your buyers can share the same login with multiple people.
3- Per Active user
Same thing as the previous model, however, with the small difference that it is the active user.
For example, regardless of how many people access the service, the amount charged will only be for the number of active users.
This type of pricing is good if your SaaS company provides service to large-scale companies.
However, it is not a good model if you are dealing with smaller companies.
4- Single fee.
As the name suggests, the “Flat Fee” pricing model is when companies charge users a single, flat fee, regardless of how many people use the product.
Read also: Why is Customer Connection Essential in the Business World?
This model is ideal if your clientele is not diverse.
Otherwise, it's not a good choice.
5- By resource
Same as the previous model, however, the rate varies according to the number of resources the user will use.
In other words, the more resources and tools the user wants to use, the more benefit the service will have.
This model is good if you offer advanced features and tools that encourage the user to upgrade.
If your service is simple and does not require more advanced features, this type of pricing is NOT the best for you.
Conclusion
I hope this guide helps you find the best pricing for your SaaS company.
If you want to improve your studies, download our free E-Book on Growth Hacking: Leads and Sales . In it, I present 4 success stories where I use several Growth tools, showing my planning step by step.