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In this interview Ryan Susanna (VP of Sales at LogiSense) discusses some of the challenges faced, along with the approaches you can take to successfully price your SaaS based products.
Pricing is the cornerstone of a profitable SaaS business, it is, however, one of the most divisive topics among teams. It typically requires buy-in from a variety of teams, including sales, marketing, and finance. Getting everyone on board with this topic can be contentious — there are bound to be discussions along the way.
You've grown a loyal customer base, and your goal now is to find the right pricing strategy. But how much should you charge them? Should you charge them by the month, or according to their usage? When it comes to pricing, there isn't a magic formula that will work for all SaaS products. Your pricing strategy will depend on a variety of factors including sales cycle length, price sensitivity of your market, competition, and more.