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How do we price a SaaS product that replaces multiple existing tools without making it seem too expensive?

Based on our saas pricing book, Price to Scale, there are a couple of approaches you can take when your SaaS product replaces multiple existing tools:

  1. Directly Communicate Value – Instead of simply adding up the prices of the separate tools, emphasize the consolidated value. Explain how your solution streamlines workflows, reduces inefficiencies, and ultimately offers cost savings on the overall tech stack. By focusing on the ROI, you mitigate the perception of a high price.

  2. Good-Better-Best Packaging – As described in our book (see Chapter on pricing tiers), one effective way is to create multiple pricing packages. With a good-better-best structure, you:

  • Offer an entry-level package that covers the core functionalities,

  • Provide a mid-tier with additional features for enhanced user needs,

  • And create a premium tier that includes advanced functionalities or add-ons.

    This approach allows you to cater to different segments of your market, making even the "full replacement" product feel accessible to cost-sensitive customers while still offering comprehensive value in higher tiers.

  1. Modular Pricing – Another approach is to adopt modular pricing, where additional capabilities (or added value that comes from replacing multiple tools) can be priced as distinct add-ons. This helps customers start with a base solution that’s not too expensive, with the option to upgrade selectively as their needs evolve. In doing so, you avoid overwhelming potential clients with a high bundled price tag from the outset.

In summary, the key strategies are to focus on communicating the consolidated value proposition and to structure your pricing in a way that addresses both cost-sensitivity and the premium nature of your high-value capabilities. This way, you can effectively price a SaaS product that replaces multiple tools without making it immediately seem too expensive.

Get Started with Pricing Strategy Consulting

Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.