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Pricing your SaaS product
Prasanna K @prasanna_says
Partner, Upekkha.in
Your biggest pricing questions are?
2
Your current pricing (all annual recurring USD)
4
● What is your highest & lowest pricing tier?
● How much does your best customer pay?
● What is the $$ difference between your best
customer and worst customer?
● What is the current pricing metric?
● When did you last change your pricing?
Pricing your product
● Cost based pricing
● Competitor based pricing
● Value based pricing
5
Product first vs Pricing first
“Monetizing Innovation”
○ Porsche vs Ford
6
Value based pricing
● What is the customer’s KPI/goal?
● What is it worth in time, money, if they reach that
goal?
● What portion of that value did you directly create?
Which cannot be created without you?
● How can you design plans so your best customers pay
more?
7
Pricing axis examples
Leading & lagging metrics
● Outcome Metrics: (savings, revenue, bookings, …)
● Pricing Metrics: Usage (API calls, Trucks, …)
● # of users (seats)
● Features: user(s) vs manager vs buyer vs
influencer
SaaS pricing impact across the funnel
● Initial revenue
● Usage based increase
● Going up the plan ladder (features)
● Cross-sell other products (for after $1Mn ARR)
9
People to follow
● Krish of ChargeBee: @cbkrish
● Patrick of ProfitWell: @patticus
● Madhavan of Monetizing Innovation:
@MadhavanSF
● Tren Griffin of Microsoft: @trengriffin
10
Questions?
Prasanna K @prasanna_says
Co-founder: Upekkha.in

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NPC: Pricing your SaaS product

  • 1. Pricing your SaaS product Prasanna K @prasanna_says Partner, Upekkha.in
  • 2. Your biggest pricing questions are? 2
  • 3.
  • 4. Your current pricing (all annual recurring USD) 4 ● What is your highest & lowest pricing tier? ● How much does your best customer pay? ● What is the $$ difference between your best customer and worst customer? ● What is the current pricing metric? ● When did you last change your pricing?
  • 5. Pricing your product ● Cost based pricing ● Competitor based pricing ● Value based pricing 5
  • 6. Product first vs Pricing first “Monetizing Innovation” ○ Porsche vs Ford 6
  • 7. Value based pricing ● What is the customer’s KPI/goal? ● What is it worth in time, money, if they reach that goal? ● What portion of that value did you directly create? Which cannot be created without you? ● How can you design plans so your best customers pay more? 7
  • 8. Pricing axis examples Leading & lagging metrics ● Outcome Metrics: (savings, revenue, bookings, …) ● Pricing Metrics: Usage (API calls, Trucks, …) ● # of users (seats) ● Features: user(s) vs manager vs buyer vs influencer
  • 9. SaaS pricing impact across the funnel ● Initial revenue ● Usage based increase ● Going up the plan ladder (features) ● Cross-sell other products (for after $1Mn ARR) 9
  • 10. People to follow ● Krish of ChargeBee: @cbkrish ● Patrick of ProfitWell: @patticus ● Madhavan of Monetizing Innovation: @MadhavanSF ● Tren Griffin of Microsoft: @trengriffin 10

Editor's Notes

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  2. Need to improve presentation of this slide