3 ms·
The reason there is no SaaS fatigue is that $117/month is still chump change for most companies or even angel funded startups. So yes, if your customer base is
by zaidf 15y ago
The reason there is no SaaS fatigue is that $117/month is still chump change for most companies or even angel funded startups. So yes, if your customer base is made primarily of individuals or nonprofitable or nonfunded businesses then there is a chance for fatigue. Most profitable SaaS cos charge what is perceived as a tiny amount by their profitable or funded clients.
- patio11 15y agoAngel funding is very much not a prerequisite to being able to pay for business tools which cost $120.
- zaidf 15y agoIt's amongst the possible prerequisites. Others include being profitable, of course. If you are not profitable, funded or part of a large corp, there is a real chance of SaaS creep from a cost angle.
- tptacek 15y agoReal businesses are either cash flow positive or (somehow) financed. If you are neither, then for the purposes of market segmentation at SaaS companies, you are not a real business. Every time the topic of SaaS pricing comes up, someone makes the point that 3-month-old startups with no revenue can't afford $10/$20/$50/$100 per month. That SaaS companies could set up a pricing scheme that would allow even 3-month-old startups to use their services. That this might pay off in the long run when a few of those companies make it big. SaaS companies could do that, but if their service is truly valuable, they don't need to --- companies with traction will pay for value whether or not it comes with warm fuzzies attached --- and if their service isn't truly valuable, they should fix that problem, not their pricing table.
- zaidf 15y agoand if their service isn't truly valuable, they should fix that problem, not their pricing table. Totally agree.