How are tech companies calculating their SaaS pricing?

Updated: May 22, 2019

Leading in from: [ Why is SaaS pricing so important? ]




If SaaS pricing is so important, how are my other fellow entrepreneurs pricing their SaaS?



This is going to surprise you.


How others are calculating their pricing



Why this falls short


What this tells us


  1. Over 50% of tech companies are pricing their products using an unscientific method.

  2. 1/4th are copying pricing of their competition who operate on a completely different cost structure.

  3. 51% rely on pricing that is not indicative of the value they are bringing to the table.

  4. 10% are relying on the inputs of their internal forecasts that are not simulated for different scenarios.

  5. 61% do not evaluate their pricing based on the value they bring to the table.


Are you one among this 61%?


If yes, you have some good news and bad.


Bad news:

You are leaving a lot of money at the table and are probably more prone to price related negotiations than having a sound strategy.

Good news:

You can make 16% more revenue this year.

Get your hands on our latest whitepaper on how to price your SaaS product


[ Download SaaS Pricing Whitepaper ]

Want to see the right way to price then?


Value Based Pricing, the right way to price your SaaS

Read here: [ Value based pricing for SaaS ]

See our earlier post on Why pricing for SaaS is so important?


[ Why is SaaS pricing so important? ]

I hope that you find this information as a conversation starter with your CXOs. If you would like to have a conversation on how you can achieve this for your organization or need assistance in sourcing good partners, we can be reached on connect[at]prequate.in.

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