Product pricing impacts the success of a product and yet most people go ahead with $10, $20 pricing because competitors are doing it.
Product pricing is no joke, we admit it guys. It's kept us scratching our heads for a really long time now.
It's sounds easy to put a random value on your product but it's far from the actual truth. ❌
The way you price and create your pricing model is a crazy thin line to walk on. What you choose might either drive the customers away instantly or bring them in a highly profitable (or even unprofitable) manner.
For the past month, ruttl has also been in the pricing cycle. We have been learning as much as we can so that the launch is successful executed.
If you're curious about how we went through learning about pricing ourselves, here's how we did it -
- Listened to multiple SaaS podcasts
- Studied tens of different blog pages
- Went through dozens of YouTube and Conference videos
Although we haven't launched ruttl yet, we felt like sharing all the knowledge that we've learnt about SaaS pricing. 📚
Here are some of the main things you need to keep in mind -
- It's okay to price more than your competition. But don't get greedy.
- If you are charging more, make sure you have something unique to offer.
- If people have set a threshold value for your type of product in the market, then either re-innovate in the market or don't cross that value where you start losing customers.
- Study different SaaS pricing models. Just the way not every product is same, not every model maybe profitable for you. Having a freemium model might actually be very useful if you are able to deliver great user experience.
- The other day, we read about a person who tried experimenting by making credit card details mandatory requirement for a trial. Reduce the friction in the process as much as you can and make it smooth for users
- Create a custom enterprise pricing option so that you can customize it according to the custom requirement while making it profitable for you at the same time.
- A free plan is highly subjective to the niche of your product. Understand the niche and think accordingly.
If you wanna go into details of trying different pricing models, do check out this interesting blog that helped us out a lot -> SaaS Pricing Models
But that's it for today guys! We hope you found the post useful! 🙌
Have a great day ahead!