Demand-based pricing is a strategic approach that involves setting the price of a product or service based on consumer demand. The objective is to maximize sales and profits by charging customers an amount they are willing to pay.
Skimming is a pricing strategy where you initially set your SaaS prices higher than usual, then gradually lower them over time. The idea is to attract a smaller target market first and generate initial revenue.
Captive pricing, also known as captive product pricing, is a pricing strategy where a "core" product is offered at a lower price, but additional products required to fully use the core product are charged separately.
Cost plus pricing is a pricing strategy that doesn't take into account competitor pricing, perceived value, or customer price sensitivity. However, it can be a useful starting point when you have limited information.
Consider the per active user pricing as an alternative to the per user pricing model. With this approach, customers pay for the individuals who actively use the product. This eases customer concerns about overspending
Feature-based pricing, a popular SaaS pricing model, allows companies to set prices based on the level of functionality provided. This approach is often used alongside tiered pricing, where more features come at a higher cost.
Let's dive into they key element of a successful pricing strategy: the pricing model. Find out how to strike the perfect balance between value and revenue and select the pricing model that is tailored to your SaaS business.
Before even considering creating a new piece of content, you should wonder if you already covered that topic before. If you did, but that article is not performing well, it might be time for a content refresh.