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Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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In today's digital-first world, coworking spaces rely heavily on specialized software to manage operations, memberships, and bookings. If you provide coworking software solutions, one of the most critical decisions you'll face is how to price your product. The right pricing strategy can significantly impact your conversion rates, customer retention, and ultimately, your bottom line.
Why Pricing Matters for Coworking Space Management Software
Pricing isn't just about covering costs and generating profit—it's a strategic tool that signals your value proposition to potential customers. For coworking space operators looking for management solutions, price often indicates quality, comprehensiveness, and expected ROI.
According to a study by Price Intelligently, a mere 1% improvement in pricing strategy can yield an 11% increase in profits—making it arguably the most powerful growth lever for SaaS businesses in the coworking industry.
Common Pricing Models for Coworking Software
Before testing pricing, it's important to understand the common models in the space management software market:
Per-Member Pricing
This subscription pricing model charges based on the number of members managed through the platform. It scales naturally with the coworking space's growth and makes costs predictable for operators.
Tiered Feature-Based Pricing
Different packages offer varying feature sets:
- Basic: Member management and simple booking systems
- Professional: Additional reporting and billing features
- Enterprise: Complete space management with custom integrations
Usage-Based Pricing
Some platforms charge based on bookings processed or space utilization metrics, making it cost-effective for smaller spaces while capturing more value from larger operations.
Essential Metrics for Pricing Optimization
When testing pricing strategies for your coworking software, focus on these key metrics:
- Customer Acquisition Cost (CAC): How much does it cost to acquire a new coworking space customer?
- Customer Lifetime Value (CLV): What's the total revenue you expect from a customer over their relationship with your platform?
- Churn Rate: What percentage of customers cancel their subscription pricing each month?
- Conversion Rate: How does pricing affect your trial-to-paid conversion percentage?
According to OpenView Partners' SaaS Benchmark Report, the median CAC:CLV ratio should be at least 3:1 for a sustainable SaaS business model.
Effective Pricing Testing Methodologies
A/B Testing Different Price Points
Create two landing pages with identical features but different price points. Direct equal traffic to both and measure:
- Conversion rates
- Time-to-decision
- Customer quality (are cheaper customers more likely to churn?)
Coworking software provider Cobot found that a 15% price increase actually improved their conversion rate when they simultaneously emphasized their comprehensive booking systems and space management features.
Feature Value Testing
Determine which features drive willingness to pay:
- Survey existing customers about feature importance
- Analyze feature usage among high-retention customers
- Test different feature combinations at various price points
Research by ProfitWell shows that member management and booking functionality typically command the highest perceived value among coworking space operators.
Cohort Analysis
Track how different pricing affects customer behavior over time:
- Do higher-paying customers use more support?
- Is there a correlation between price point and churn?
- Which pricing tier shows the best expansion revenue?
Pricing Psychology for Coworking Software
The presentation of your pricing can be as important as the numbers themselves:
The Anchor Effect
Start your pricing page with a premium offering to make standard tiers seem more affordable. Many successful coworking software companies present their enterprise solution first, followed by more accessible options.
Value-Based Messaging
Frame pricing around the problems solved rather than features offered:
- "Increase space utilization by 22%" instead of "Booking system included"
- "Reduce administration time by 15 hours/week" instead of "Automated member management"
Simplicity Premium
According to a study by ChartMogul, SaaS companies with simple, transparent pricing saw 30% higher conversion rates than those with complex models. For coworking software specifically, clarity in pricing leads to faster adoption decisions.
Implementation Timeline for Pricing Tests
A methodical approach to pricing testing typically follows this timeline:
- Month 1: Research current market rates for similar coworking software solutions
- Month 2: Develop hypothesis and testing methodology
- Month 3-4: Run A/B tests with different price points or structures
- Month 5: Analyze results and implement winning strategies
- Month 6: Measure long-term impact on retention and customer satisfaction
Case Study: How SpaceManager Optimized Their Pricing
SpaceManager (pseudonym) saw their conversion rates plateau despite growing traffic to their coworking software platform. Through systematic price testing, they discovered:
- Their entry-level tier was priced too low, creating perceived value concerns
- Their mid-tier plan lacked a clear differentiation from competitors
- Customers valued integration capabilities more than advanced reporting
After implementing a new pricing strategy based on testing data:
- Conversion rates improved by 18%
- Average revenue per user increased by 22%
- Churn decreased by 7%
The key insight: pricing optimization isn't just about finding the highest price customers will pay—it's about aligning price with perceived value in the space management marketplace.
Tools for Pricing Testing
Several tools can help streamline your pricing tests:
- PriceIntelligently: Specialized SaaS pricing optimization
- Optimizely: A/B testing platform with conversion tracking
- ChartMogul: Subscription analytics for measuring pricing impact
- Profitwell: Revenue optimization focused on subscription businesses
Conclusion: Continuous Testing is Key
The most successful coworking software providers approach pricing as an ongoing optimization process rather than a one-time decision. Market conditions evolve, competitor landscapes shift, and customer expectations change over time.
By implementing a systematic approach to testing your subscription pricing, you can ensure your coworking software remains competitive while maximizing revenue. Remember that effective pricing reflects both market realities and the true value your platform delivers to space operators and their members.
The right price isn't just about what customers will pay today—it's about building a sustainable business that can continue to innovate and serve the evolving needs of the coworking industry tomorrow.