How to price your SaaS the RIGHT WAY
Ahmed Yassin
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How to price your SaaS the RIGHT WAY
I spend a lot of time on Product Hunt and Indie Hackers, and I've seen nearly every product out there π.
I think people are approaching it the wrong way.
Sometimes, I come across pricing points as high as $1200 per month for a single user
But at the same time:
-->Their landing page looks subpar.
-->The founder has only 140 connections on LinkedIn (products in this pricing range are mostly for B2B).
-->The company's LinkedIn page does nothing to persuade you to buy the product.
-->They don't have a video on their landing page (i didn't come up with this one trust meπ).
This means:
-->No investment in the quality of the sales funnel.
-->No time investment in branding.
Charging "that high" (it's not really high; you can go higher if its done right) requires a ton of trust, which takes years to build.
So why not start smaller, perhaps at $35 to $59, for example?
You might say, "But Alex Hormozi said to charge as high as possible."
Yes, he's 100% right, but not necessarily in your situation.
If you offer people the best deal and they don't trust you, nothing will change they will think that you're another "scammer".
Slowly move to the $129 to $299 plans
BUT always keep the pricing for enterprises as high as possible.
and always when you want to higher your prices, play on the trust side
It's a straightforward equation that you can use these variables to calculate pricing:
E: Monthly expenses incurred by the company.
C: Initial development costs to create the software.
V: Estimated monthly earnings per user from the product.
T: A trust factor representing the level of trust users have in your company.
π€
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