So you’re trying to create a pricing model, whether for a new offering or to make more money from your current offerings. You’re probably wondering where to begin and how pricing works.
The information below will serve as a practical guide on how pricing works and how to price your products and services. While these considerations are primarily geared towards B2B SaaS solutions many apply to different industries, marketing strategies, and sales cycles.
This piece will focus on four main considerations
- Identify your early adopters and purchasing model
- Creating a value framework
- Displaying pricing
- Pricing Psychology
Identify your early adopters and a purchasing model
When starting to think about how pricing works for your business, it’s critical to identify your early adopters. In SaaS, early adopters are often labelled as the Ideal Customer Profile (ICP).
The first step is to create a hypothesis and definition for who these early buyers might be. At a high-level these folks can be defined as the “perfect customer” – they’re experiencing the pain your product/service solves and they’re willing to pay for it.
Early adopters are naturally risk-takers and are willing to grow with your product. They often want involvement in the product roadmap and offer feedback as you build out your offerings.