you generally want to charge more for an enterprise (much higher budget) than an SMB (limited budget), but with a flat-rate pricing model, you can’t. It’s difficult to get max potential revenue from a diverse customer base.Or, as with the example with Basecamp, you can use the pricing model to stand out from your competition, who have more complex pricing models.The flat-rate pricing is perfect for a product with a simple, single use-case.It’s the easiest pricing model to explain to your users.
So, whether you’re an enterprise with thousands of employees or a tightly-knit team of 5, Basecamp offers the same pricing model. The most popular example for flat-rate pricing models is Basecamp: their software costs a flat rate of $99 per month. You charge a single price for all of your users to get access to your software. This one’s the most straightforward SaaS pricing model out there. So, ready to become an overnight SaaS pricing expert? The pricing strategies we’re going to cover include: In this guide, we aim to teach you everything you need to know about SaaS pricing models, so you can get the best revenue out of your business (and at the same time, create the most value for your users). If you’re looking to experiment with your pricing model, and find the one that works best for your business, you’re in the right place. Most companies sit down, brainstorm a bit, define their pricing, and use that exact model for years to come.īut what if your SaaS pricing model is sub-optimal, and you could be earning up to 40% more revenue, just by optimizing your pricing strategy?
Not 6 hours in a week, or a month, or a year. The average SaaS company spends a grand total of 6 hours on its entire pricing strategy.Ħ hours as in, 6 hours in total. You’d think, it’s something companies put a lot of time and effort into, right? Something you experiment with, try several models, and ultimately, pick what works best.
Pricing is one of the biggest determinants of your potential revenue…Īnd yet for most SaaS companies, pricing is more of an after-thought.Ĭan you guess approximately how long the average SaaS company thinks about its pricing model? Shares 0 Facebook Tweet LinkedIn Pin Print
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