Today, we’re talking about pricing and for most Software as a Service companies pricing should be quite simple. Here’s how to do it.
1. Pricing tiers
Keep it simple with a max of 3 pricing tiers. Don’t be tempted into giving customers incremental control and add-on options. That increases complexity and reduces revenue.
2. Bundle Usage & Features
Encourage upgrades by coupling both increased usage allowances and premium features; don’t limit the ways customers can pay you more.
3. Start with a High Price
Most founders undervalue their service by a large margin. Start with what feels like a high price. You can always offer discounts for annual commitments.
Best of luck out there.
Sterling Road invests in idea stage and pre-seed B2B startups based in the US, Canada and UK.
