tag:blogger.com,1999:blog-18867375.post8472964922372637746..comments2023-05-21T13:20:47.722+02:00Comments on The Angel VC: The 5th DO for SaaS startups – Get your pricing rightChristoph Janzhttp://www.blogger.com/profile/07905463949262014311noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-18867375.post-46002414984797518182013-02-13T14:05:06.925+01:002013-02-13T14:05:06.925+01:00Great post (I m a bit late because I just landed o...Great post (I m a bit late because I just landed on it today) and great Blog in general! <br />Refering to it and Stephan’s comment, I was wondering what your take is on specific B2B situation. We are targeting “Independent Merchants” with a Saas (actually more like a BaaS). They are very concerned about long term cost and/or subscription and we realized that they are more inclined to pay for a service or tool on a “pay as you use” basis. Therefore we build our solution to offer great features on a free basis (unlimited) and created a large selection of optional tools. We also count on one of our specific feature which should trigger organic growth. And in the end, we believe they may be more comfortable knowing it is only when they actually use the tools rather than a subscription which meant they would have paid even when not using the solution. So rather than having 7% of them paying €20/month, 5% will pay €45 from single uses every month (of course it’s always a risk). But it also opens opportunities to even larger sales per customers rather than higher conversion rate, because we can target specific customers with specific tools. What's your take on this ? have you already worked on such basis ? would love to get some feedback from you about it ! Christophe L.http://www.kireego.comnoreply@blogger.comtag:blogger.com,1999:blog-18867375.post-57393214686314319102013-02-08T09:53:43.024+01:002013-02-08T09:53:43.024+01:00Anonymous – setup fees don't get me very excit...Anonymous – setup fees don't get me very excited since (sorry for stating the obvious) they don't increase your recurring revenues. That doesn't mean that you shouldn't charge them if you can and if you have costs associated with setup.Christoph Janzhttps://www.blogger.com/profile/07905463949262014311noreply@blogger.comtag:blogger.com,1999:blog-18867375.post-29629729579849957312013-02-08T09:51:45.090+01:002013-02-08T09:51:45.090+01:00Stefan, thank you for your comment (and the kind w...Stefan, thank you for your comment (and the kind words)! Good and interesting point. I like to think that way too – that an amount like $20/m should be a no-brainer for a business and if your product delivers any value at all then asking for $20/m shouldn't prevent anyone from using/buying. Looking at the success of Wave Accounting I'm not sure if that's true though. It seems like the fact that they offered a free version allowed them to grow much, much faster than any other online accounting solution.<br /><br />Christoph Janzhttps://www.blogger.com/profile/07905463949262014311noreply@blogger.comtag:blogger.com,1999:blog-18867375.post-30826098294084966422013-02-08T06:55:20.289+01:002013-02-08T06:55:20.289+01:00Great post. What about setup fees? In particula...Great post. What about setup fees? In particular, I am in a business that requires large amounts of client data feed setup for daily and real-time processing. This has a cost which we attempt to minimize but it exists. Any recs on how to find the right price, because currently I believe we need to eat some of this in return for longer term subscription commitments.<br /><br />Second we offer both on premise and SaaS to clients solving the same busienss problem. I am interested in how you think your recs would change in this scenario. For instance, transparency on pricing would be problematic since we don't publish on premise pricing.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18867375.post-77083246047378819222013-02-05T10:04:32.391+01:002013-02-05T10:04:32.391+01:00Thank you for the excellent post (again)!
When you...Thank you for the excellent post (again)!<br />When you are in B2B SaaS, I personally don't think it is a good thing to have 95% of the users using your product for free. If you are developing business software and users are not willing to pay a small amount for it (say $20-$30/month), there is a high risk that your software is not solving a real business problem. <br />And these are the kind of things that you'd like to find out quickly. Therefore, it's good to limit the free version for testing or proof of concept use and charge a fee for 'serious' use of the product. At Survey Anyplace, we limit the free version to 20 responses per month, which is just OK for testing and very small scale use; anything else has to be paid for! - but is still very affordable ;-)Anonymoushttps://www.blogger.com/profile/07445597330752286724noreply@blogger.com