How should we price our SaaS?

Jon and Justin try to decide how much to charge for Transistor.
We're hoping to launch Transistor officially in July 2018.

And that means we need to figure out a pricing strategy. What types of tiers and plans should we offer?

SaaS pricing examples:
Patrick Campbell, from Price Intelligently, says there are three aspects of a pricing strategy:
  1. Positioning: who are the right customers for your product? How will you target and attract them?
  2. Packaging: what features are included in each tier? What value does each type of customer want from your product?
  3. Pricing: putting a price on your tiers that reflects the value your customer receives.
Where did we get stuck? Jon and I started by looking at who had signed up for early access to Transistor:
  • Hobbyists – podcasting for fun, two people talking, no advertising.
  • Prosumers – side-project podcasting, may have a bit of income, want to go pro.
  • Solopreneurs – solo founders building smaller tech products. 
  • Small tech teams – teams of 3-10 people building larger software products.
  • Bigger brands / enterprise companies.
This list brought up a question: how do we define our target customer? Is "podcast hosting and analytics for professionals" too broad?

Here's our homework for this week: we're going to let this simmer, we're going to talk to smart people about pricing, and we're going to come back to this next week.

Question of the week:

Tweet to @jon and @mijustin and let us know: how should we price our SaaS?

Show notes

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How should we price our SaaS?
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