How to Price a SaaS for Your First Customers
- 1Find the cost of the problem
- 2Pick a price band
- 3Offer it to five buyers
- 4Watch who says yes
- 5Adjust and repeat
The math of price
| Monthly price | Customers for $1,000 a month |
|---|---|
| $19 | 53 |
| $49 | 21 |
| $99 | 11 |
| $199 | 6 |
Start from the cost of the problem
If your product saves ten hours a month, what is that worth to them? Price at a small share of that.
Test it with real people
Quote the price on the call. If everyone agrees at once, it is probably too low. If everyone balks, it may be too high or the value is unclear.
Keep it simple
One or two plans at first. You can add more once you know who buys.
A worked example
A tool saves a small team about eight hours a month. At a modest hourly cost, that is worth several hundred dollars. The founder tries $99 a month on the first five calls. Four say yes without pause, so she tests $149 on the next five. Three say yes. She keeps $149 and tells the next customers it will rise later.
Common mistakes
- Pricing low to avoid hearing no.
- Building six plans before you have six kinds of customer.
- Giving long free pilots that never turn into a decision.
- Hiding the price until the end of the call.
Where Touchbase fits
Touchbase finds companies that fit what you sell, says why each one fits, writes a plain first email for each that you approve before anything is sent, and handles replies and follow-ups. You choose who to write to and what goes out.
Find your first customers with Touchbase
Touchbase finds companies that fit what you sell, writes each first email for you to approve, and handles the follow-ups. It is free to start, with no card.
Start freeQuestions
- Should I offer a free plan?
- A free plan helps adoption, but a trial that ends in a paid decision teaches you more about demand.
- How often should I change price?
- Change it for new customers as you learn. Be fair to the ones you have.
- Annual or monthly?
- Offer both once you have steady customers. Annual helps cash flow.
