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Estd 4.22.2023
Based on the insights from our SaaS pricing book, Price to Scale, both approaches have merit depending on your market and customer dynamics. Here’s what our book suggests:
• When you list a starting price or range (for example “starts at $1000/month”), you offer a clear reference point that sets expectations. It lets potential customers gauge affordability and value quickly, which can be useful when your pricing model is relatively straightforward.
• On the other hand, using “Contact us for pricing” can be strategic if your highest tiers have complex value propositions, are highly customized, or if your sales calls add significant value in tailoring the offer. This approach not only keeps your pricing flexible but also allows you to engage directly with prospects to uncover additional needs and capture more value.
Our book details several methods for presenting pricing. One effective strategy is to summarize your pricing for transparency while leaving more complex discussions to the sales process. This means you might display a “starting at…” price for lower tiers while reserving detailed pricing for higher, more customized packages.
In summary, consider your product’s complexity and market expectations:
– Use a starting price if clarity helps in decision making and if your product can scale without many adjustments.
– Use “Contact us for pricing” when customization and added value through direct engagement can drive higher revenues.
Each method serves as a tool in your pricing toolbox, and choosing the right approach depends on balancing transparency with the ability to discuss unique enterprise needs.