3 ms·
"A high price point is a bounty on your head" -- a serial entrepreneur friend of mine. As SaaS businesses, our fear is that all this uncaptured downmarket dema
by sigil 13y ago
"A high price point is a bounty on your head" -- a serial entrepreneur friend of mine.
As SaaS businesses, our fear is that all this uncaptured downmarket demand will create a competitor where none may even exist currently. These potential competitors also have an advantage. You've proven the market for them, and they can expend fewer cycles building their SaaS by simply copying the useful features you've already built.
We all know the standard advice here. Find those features or capabilities that don't provide much value to these downmarket customers, then introduce lower price points with pared-down versions of your SaaS.
But this article suggests another approach, and I like it: instead of paring down features, find out what potentially new features add value for your downmarket customers. Build them. Bring their value received up to your price point, instead of bringing your price down to their value.
This may be hard to do in practice, but it's an interesting idea.
- tomrod 13y agoAbsolutely. Finding that sweet spot in pricing is essential. One issue I find is when people don't differentiate _enough_. For example--I may have a blackboard killer CMS, but if I don't have any kind of differentiation from blackboard, I'm only competing on price. And, if I introduce new features but never show HOW these help the consumer, they won't value it.