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This sounds like a good startup concept for a SaaS: 1-low cogs (80%+ gross margins) 2- predictable and long term renewal contracts; low customer churn 3- if th

This sounds like a good startup concept for a SaaS: 1-low cogs (80%+ gross margins) 2- predictable and long term renewal contracts; low customer churn 3- if this is a problem for a 10b+ company then nearly every other company should also be your potential customer Price your product in a similar way that others do (there is always competition). Remember that the price for your first customer will not be the price for every other customer. You can and will iterate just like you do with your code. There is plenty of discussions around ACV, ARR and product-led growth out there. For example https://www.lightercapital.com/blog/what-is-acv-in-sales/ https://www.lightercapital.com/blog/what-is-acv-in-sales/

spatialdata 5y ago
Thank you, marc_1, This is a good point. Perhaps there is some logic to finding a price that lets us hit the next milestones and get customers two and three onboard. Even if it is less than what the material value might be for customer one. That is a good link, I appreciate the reference. My primary takeaway is that according to the survey on SaaS ACV we would be on the very high end even at $120k/year. I think this is part of the challenge I face - the customer is not used to seeing SaaS billed this way.