To understand the value of your product you absolutely need to talk to your prospects and customers.
What is the perceived value of my product? So start with the goal in mind : what is the number you want to make and how many units you can realistically sell? This is your ideal price, make a note of it and move to the next step. Remember pricing is an instrument and not a goal. But the readings will help you build your roadmap. No reading will give you the perfect recipe for pricing. When I started to work on pricing in my current company, I remember listening to podcasts about pricing while commuting to work and reading during evenings. There are many articles on the web but don't forget to check if they come from trusted sources. First start by reading almost everything you can about pricing. Start now and get ready because it is going to be a process, and not the result of a team meeting. This is for do-it-yourself entrepreneurs that don't have the disposable income to pay for a Mckinsey pricing strategy.
#VALUE BASED PRICING SAAS HOW TO#
In this article I will share insights on how to build a methodology to establish your own pricing and some common pitfalls. Pricing is as much an art as it is a science, one that relies as much on marketing and psychology as it does on classical economics. A lot of startups treat pricing as a math problem or, worse, an afterthought. Value-based pricing is the only way to go for SaaS founders. Many founders leave money on the table therefore the burn increases and the end of the startup can be easily predicted with an easy calculation. However value-based pricing has a psychological dimension which is very complex to capture and translate in $$$. It seems like an easy task to get done, because everyone can have an opinion about what the pricing should be. Founders spend all their time on product and sales and very little time on pricing. Pricing is a powerful instrument that helps a founder to fulfill the vision of his company.
0 kommentar(er)
