![]() You must balance this number to ensure that you see a steady flow of customers while ensuring profitability. Software pricing is setting a final cost for your end product. I also understood the value of the discount offered for a limited time, making the purchase a no-brainer. I was now paying an amount that offered me more value for money, making the purchase a no-brainer. I bought the subscription immediately-because Grammarly had gotten the price right for me with the discount. ![]() I quickly did some math and found that Grammarly would help me and my team write clearly and effectively. One day, I chanced upon a promotional email from Grammarly offering me 20% off on the current running price on my birthday. I shied away from purchasing subscriptions for SaaS tools such as Grammarly because they were too expensive for me at the time. I would create the newsletters by hand and even send out mailers to my target audience on my own. When I started as an entrepreneur, I was a one-man army for nearly everything tech and non-tech. Although the product lost favour with customers due to multiple reasons, the price was an important factor.Īs a customer, I love a deal when it comes my way. A head-mounted device with smartphone capabilities was the first attempt of a major tech company to connect the typical customer to augmented reality. Although this “sensitivity” to the price of a product may be at different levels, too high or even too low a price can put off potential customers.Ī well-known example of a product losing steam because of its cost is Google Glass. ![]() Most customers are inherently “price-sensitive”. If you cannot find faults with the product or your go-to-market strategy, have you thought of learning more about how to price a product effectively? But somehow, you cannot find the numbers you need to ensure profitability. Your investors are happy with the end product, your target audience loves your marketing campaigns, and you’ve hit the market at the right time. You’ve created a groundbreaking product that is ready to disrupt the space it operates in. It is vital for every startup to know their customer base, understand software pricing strategies and the importance of pricing software or SaaS products in a way that can help your business be successful in the long run. If you are a budding entrepreneur, you must have struggled with pricing your product. How to price your software product effectively – a definitive guide to pricing economics and improving your bottom line
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