How should we price our SaaS?

May 22, 2018 / 57:49/E13

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:

Positioning: who are the right customers for your product? How will you target and attract them?
Packaging: what features are included in each tier? What value does each type of customer want from your product?
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.