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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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Based on the frameworks in our pricing strategy book, Price to Scale, a solid approach for pricing a SaaS with numerous integrations—especially when the integration complexity is highly variable—is to use a modular pricing structure. Here’s how you can apply this approach:
• Direct Answer
When integration complexity varies widely across dozens of tools, you should consider pricing those integrations modularly by attributing distinct value (and costs) to each integration based on its development effort, ongoing support, and customer benefit.
• Supporting Information from Price to Scale
Our book outlines two primary approaches:
Good-Better-Best Packaging: This method groups features into graded packages that target different customer segments. It works well when there’s less variance in willingness to pay. However, when technical or integration complexity is a significant factor, using a modular structure can offer more flexibility.
Modular Pricing: As discussed in Price to Scale, a modular approach involves pricing features or components (such as integrations) as separate add-ons. This approach lets you:
- Breakdown the overall solution into core functionality and optional integrations.
- Charge a premium for more complex or resource-intensive integrations.
- Provide a clear value proposition to customers by linking the price directly to the complexity and the resulting benefit to their business.
• Practical Application
- Identify which integrations are standard and which ones require more complexity in implementation or support.
- Design pricing modules where basic integrations might be included in a standard package, while advanced or custom integrations are priced as add-ons.
- Ensure that your pricing signals the value based on the effort and outcomes each integration delivers, aligning with customer needs and internal cost structures.
• Takeaway
By leveraging a modular pricing strategy—as detailed in Price to Scale—you can more accurately capture the value of each integration and ensure that customers pay for exactly what they need, making your pricing both flexible and scalable.
In summary, attribute value to each integration based on its complexity and position them as modular add-ons within your overall SaaS pricing structure. This ensures that your pricing reflects both the benefits to the customer and the underlying costs associated with each integration.