Ask HN: What's the best pricing strategy for SaaS?
11 comments
Both the Retool and Segment founders talk about "unreasonable quoting". The algorithm goes as follows:
1. Meet with customer
2. Take your ask, multiply it by 1000x
3. If customer isn't happy, divide number by 10
4. If customer still isn't happy, divide by 10 again
5. Eventually get down to the number you were willing to sell
6. Rinse and repeat.
You'll find that you may not get to step 5 as often as you think (customers pay more than you think they will)
1. Meet with customer
2. Take your ask, multiply it by 1000x
3. If customer isn't happy, divide number by 10
4. If customer still isn't happy, divide by 10 again
5. Eventually get down to the number you were willing to sell
6. Rinse and repeat.
You'll find that you may not get to step 5 as often as you think (customers pay more than you think they will)
Big fan of segment
Yearly subscriptions with pre-payment are great for your cashflow, you should therefore always try to get your customers to sign up for a yearly plan. We e.g. offer a risk-free refund policy for that reason: If you're unhappy with the product you can cancel at any time during the yearly subscription, we will then retroactively charge you the monthly price and refund the remaining balance (I understand this might be difficult in your case). We offer our yearly subscriptions at a 20 % discount and most of our customers choose those.
But in my case, people always can see what they are getting after payment. As they can see the preview also they'd know the dimension (e.g. 4000*2000px, or vector)
In the meantime, you can watch this video by Michael Dearing on pricing https://www.heavybit.com/library/video/harrison-metals-micha...
Great one, thanks
This one from David Skok covers metrics in general, prepayment also covered: https://www.forentrepreneurs.com/saas-metrics-2/
Just bookmarked
Rule #1: Charge more than you think you should charge
I'm very close to the launch but not sure about the pricing yet.
Option A: I can put a monthly price, but churn would be higher as people would just download as many as they possibly can and unsubscribe. (e.g. $12 per month)
Option B: Just yearly subscription. (e.g. $69/year)
Option C: The credit system. Get 100 credit for $50. 1 credit = 1 asset.
You can check snippets of my product here: https://makesumo.com
Please let me know your thoughts. This is my first SaaS product.
P.S. There would be freebies on the site as well.