A PaaS may target developers, while an IaaS is likely aimed at tech industry pros. Your software might be perfect for businesses or geared more towards individuals. If your SaaS is vertical, you may be looking at clients in a specific industry, but it can be a more difficult question for horizontal providers. Hand-in-hand with building trust, you’ve got to learn exactly who your customers are.
They’ve kept their competitive edge by raising prices incrementally, continuing to offer an affordable basic package, avoiding hidden fees, and being upfront about their service. For instance, Netflix has steadily raised its prices over the years. Be transparent about pricing, keep fees simple, and be cautious about raising your prices. Your pricing strategy can play a big role in making this happen. Your goal is to attract customers and keep them coming back.
As you’re building your pricing model, try not to aim high, and it’s always good to offer a low-cost, entry-level, or freemium package to attract a wider audience. Everyone wants to pay the lowest price for the highest quality. It’s better to start too cheap than too expensive. You won’t really know if your SaaS pricing is effective until you put it out on the market. You should also make sure that everything your SaaS offers is included in your single pricing structure, so be thorough in planning it. If you signed up for a tiered subscription service and it suddenly became a usage-based fee, you’d probably take your business elsewhere. You’re bound to have to raise your rates eventually, but you want to keep your framework consistent once you have it together. You want to be able to simplify your structure in a way that can be presented visually and makes sense before you even read it. Most templates for pricing pages use three simple boxes that briefly break down the features of different tiers. A customer might see a complicated structure and go somewhere else without even reading it. Whatever pricing model you go for, make it digestible.
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